Impact permittees
What this bill does related to your project(s)
Expands out-of-area credit options with proximity rules
If credits aren’t available inside a bank’s service area, banks outside may be used—with ecological “proximity multipliers”:
- 1.0× for in-kind, in-area credits
- 1.0× for in-kind, same watershed out-of-area
- 1.2× for adjacent watershed
- +0.25 for each additional watershed crossed
- +0.50 for out-of-kind credits
*This multiplier accounts for the ecological cost of using credits from a different habitat type.
Credit deficiency & availability determination
DEP or the water management district must initiate a credit availability check:
- Contact all relevant banks within 7 business days
- Banks must reply within 15 business days
- No reply = presumed unavailable
Agencies then notify the applicant.
The credit availability determination is valid for 6 months, but only for the original permit application (not renewals, mods, or extensions).
Service-area rules clarified
Bank service areas are generally tied to regional watersheds. Credits are meant to offset impacts within their designated area. Out-of-area credits may be used only when: A credit deficiency is verified, and the proximity multiplier framework is followed.
How it works in practice
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Impact permit applicants get a clearer roadmap for how and when credits can be used
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Out-of-area credit use is structured, time-limited, and requires documented shortage
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Mitigation banks must respond quickly or risk being bypassed
Why it matters
- Helps avoid permit delays when local credit supply is limited
- Encourages strategic planning and transparency
- Maintains ecological integrity through proximity-based safeguards
- Clarifies eligibility for projects often in regulatory gray zones (e.g., linear corridors, urban infill)
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Bottom Line
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