Notice of Indirect Cost Rates
Published Date: 2/9/2026
Notice
Summary
NOAA’s Office of National Marine Sanctuaries just set new indirect cost rates for their natural resource damage work from 2019. These rates help cover shared expenses like admin support when fixing damage caused by pollution or accidents. Starting February 9, 2026, these updated rates will guide how NOAA recovers costs, making sure responsible parties pay their fair share.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
FY2019 Indirect Rates Established
NOAA's Office of National Marine Sanctuaries set FY2019 indirect cost rates to recover administrative support costs: Florida Keys 14.01%, Greater Farallones 4.28%, and all other sanctuaries 0.39%. NOAA will apply these rates to natural resource damage and restoration case costs incurred from October 1, 2019 until present using the Direct Labor Cost base allocation method.
Retroactive Application to 2019 Onward
NOAA will apply the FY2019 indirect cost rates to all damage assessment and restoration costs incurred from October 1, 2019 until present. For cases within that period, indirect costs will be allocated using the Direct Labor Cost base and charged using the FY2019 rates.
Settled/Paid Cases Not Reopened
NOAA will not re-open any resolved matters to apply the FY2019 rates for cases that settled or had cost claims paid prior to the effective date of the fiscal year in question. If a case was already settled and paid before the applicable FY effective date, NOAA will not adjust those resolved payments.
Agreed Payments Held at Prior Rates
If a responsible party agreed to pay costs using a previous year's indirect rates but has not yet made the payment because settlement documents are not finalized, NOAA will not recalculate those costs using the FY2019 rates. Your agreed payment amount remains as negotiated until the settlement is finalized.
FY2019 Rates Used Until Replaced
NOAA will use the FY2019 indirect cost rates for future fiscal years until year-specific rates are developed. That means future damage assessment and restoration recoveries will use the FY2019 percentages unless NOAA issues new rates.
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