CS/CS/SB 492: The Future of Mitigation Banking in Florida


Florida’s mitigation banking framework is about to experience a major shift. Governor DeSantis has signed CS/CS/SB 492 into law, setting in motion a series of regulatory changes that will take effect July 1, 2025. The law introduces a standardized credit release schedule, allows the use of out-of-area credits under defined ecological multipliers, and requires annual reporting from all mitigation banks. These changes are poised to significantly impact how credits are released, applied, and tracked statewide. Here’s what you need to know now to stay ahead.

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


  • Impact permit applicants get a clearer roadmap for how and when credits can be used
  • Out-of-area credit use is structured, time-limited, and requires documented shortage
  • 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

Feature

What Changed

Out-of-area Credits

Now authorized for projects with multipliers

Credit Availability

7+15 day determination, 6-month reliance window

Mitigation Bankers


What this bill does related to your project(s)


Standardizes the credit release schedule


Starting July 1, 2025, credit release for a mitigation bank permit must follow a preset schedule:


  • 30% upon recording conservation easement + financial assurances
  • 30% after initial construction
  • 20% with interim performance criteria
  • 20% upon meeting final success criteria
  • Preservation-only banks receive 100% of credits upon easement recordation and financial assurances.


Alternative schedules allowed


Applicants can propose different release schedules, which DEP or the Water Management District must consider. Existing banks can adjust to the standard schedule before any construction-phase credits are released.


New Freshwater Credit Creation Criteria


Credits tied to freshwater wetland creation can only be released after meeting the initial construction success criteria, ensuring restoration work is actually underway- no crediting based on proposed plans alone.


Annual reporting Requirement


Beginning July 1, 2026, each mitigation bank must submit an annual inventory of available credits (excluding reserved names and pricing). DEP/WMD will aggregate this into a statewide report submitted to the Legislature by October 1 each year


How it works in practice


  • Bank developers now get deterministic credit release timelines—less waiting, more predictability.
  • Annual disclosure adds transparency, tracks available credit supply, and helps anticipate shortages.
  • DEP/WMD get centralized visibility to manage statewide supply and demand


 Why it matters



  • Replaces inconsistent credit release structures with a uniform, fair framework
  • Improves transparency and supports data-driven decisions for regional planning
  • Builds confidence for investors, consultants, and agencies by removing ambiguity

 Bottom Line

Feature

What Changed

Credit Release

30/30/20/20 Rule (or 100% for preservation banks)

Alt Schedules

Allowed, with DEP/WMD review

Freshwater Credits

Cannot be released until initial construction criteria is met

Reporting

Annual Statewide Bank inventory reporting

Proximity Factor Rule Comparison: Florida SB 492 vs. USACE

The proximity factor provision in Florida Senate Bill 492, now signed into law, establishes a state-level numeric multiplier system that adjusts credit use when mitigation is sourced outside a project's immediate watershed or habitat type. While this mirrors the intent behind the U.S. Army Corps of Engineers’ proximity considerations under the 2008 Mitigation Rule, the two frameworks are functionally different.


Florida applies fixed multipliers when local credit shortages are confirmed, enabling defined out-of-area use under a time-limited, rules-based process. In contrast, USACE proximity is qualitative, one of several factors used in determining ecological suitability, and remains rooted in watershed-level planning and professional discretion.


As a result, applicants seeking both state and federal approvals must navigate both frameworks—balancing Florida’s formula-driven compliance with the case-by-case ecological judgments required by USACE. In some cases, this could lead to differing interpretations, or require additional coordination to align state- and federally-approved mitigation plans.

Criteria

Florida SB 492 Multiplier

USACE Proximity Tool Multiplier

Same Watershed

1.0x

1.0x (same 8-digit HUC)

Adjacent Watershed

1.2x

1.5x (1 HUC away)

Two Watersheds Away

1.5x

1.75x-2.0 (2+ HUCs away)

Different Habitat Type (Out-of-Kind)

+0.5x

+0.25x

Different EPA Ecoregion

N/A

+0.25x

Want to talk about it?


If you would like to discuss any items covered in this newsletter in more detail, are interested in purchasing wetland or conservation credits, or have any questions related to mitigation banking, I am here to help. Please feel free to contact me directly via call, text, or email at your convenience. I would be happy to provide further information and answer any questions you may have.


Tiffany Petkov

Director of Business Development

Tiffany@JMBCompanies.com

407-405-6016

JMB Ecological Offsets | JMBCompanies.com