Florida’s Approach to Natural Resource Damage Assessment: A Short, Sweet Model for States Seeking Compensation

Abstract

A recent survey of state environmental regulators revealed that natural resource injuries caused by oil pollution are a major concern, yet few respondents reported pursuing compensation for damages on a regular basis. It appears that their reluctance is due to the fact that many view natural resource damage assessments (NRDA) as a costly, time-consuming and legally risky undertaking. This article presents a case study of Florida’s approach to this type of regulation, which relies on the combination of a standardized arithmetic formula and an interactive GIS. Once compensation is obtained, dollars enter a trust fund from which withdrawals can be made when the balance is sufficient to conduct needed restorations. This approach is suggested as a model for jurisdictions interested in pursuing damages for natural resource injuries because it has proven to be a quick, inexpensive, and defensible mechanism for generating damage estimates, even for small spills. Like any real-world application, Florida’s methodology is not perfect, but shortcomings are discussed here in depth and potential solutions presented.