Florida Legislature Advances SB 492/HB 1175: Proposed Updates to Mitigation Banking Regulations
UPDATE: As of April 11, 2025, SB 492 and HB 1175 have passed key committees and continue to move through the legislative process in the Florida Legislature. These proposed bills would introduce significant changes to Florida’s mitigation banking framework, including standardized credit release schedules and expanded flexibility in using out-of-service-area credits. If passed and signed into law, these updates aim to streamline credit availability while maintaining environmental standards—particularly important as development pressures and permit backlogs continue to rise across the state.
At The Mitigation Banking Group, we’re closely monitoring this legislation to help our clients understand the potential impacts and prepare accordingly.
Key Proposed Legislative Changes at a Glance:
Standardized Credit Release Schedule (Effective July 1, 2025, if enacted): The proposed bill would eliminate case-by-case determinations for credit releases, instead establishing a uniform release structure:
- 30% released for recording conservation easement & financial assurances
- Preservation-only banks: 100% released after easement & assurances
- 30% upon completion of initial construction
- 20% during interim performance monitoring
- 20% upon achieving final success criteria
Freshwater creation credits would become eligible for release upon completion of initial construction criteria—not final success, as previously required.
New Flexibility for Out-of-Service-Area Credit Use: If local mitigation credits are unavailable, DEP or a WMD could allow out-of-service-area credit use, provided the following criteria are met:
- DEP/WMD must verify lack of local credits within 8 business days
- Proximity multipliers would offset ecological differences:
- 1.2x multiplier for adjacent watershed
- +0.25x per additional watershed
- +0.5x for out-of-kind mitigation
This provision is intended to help reduce permitting delays while maintaining ecological integrity.
Annual Mitigation Bank Reporting Requirements: Starting July 1, 2026 (if passed), all mitigation banks would be required to submit annual reports to DEP or WMD listing available credits. These reports would not include reserved credits or pricing but will inform an annual state-level review due to the Governor and Legislature by October 1 each year.
Conservation Easement Release Provision: Small, isolated parcels could become eligible for conservation easement release if:
- The parcel is <15 acres and bordered by impervious surfaces on 3+ sides
- There are no nearby significant environmental or cultural resources
- Mitigation credits are purchased to offset the impact
- Released land is taxed at full ad valorem value and may be developed per local zoning
What This Could Mean for the Mitigation Banking Industry
If signed into law, SB 492 and HB 1175 would represent a major evolution in how mitigation banking is managed in Florida. The standardized release process offers predictability, and out-of-service-area flexibility could provide much-needed relief in high-demand watersheds. The proposed annual reporting introduces greater transparency and may guide future state planning.
Need Help Understanding SB 492/HB 1175?
Whether you operate a mitigation bank or need credits for a project, MBG is here to help you navigate what these proposed changes could mean.
Reach out directly to Victoria Bruce at victoria@mitigationbankinginc.com or (407) 960-5787.
