Army Corps Signals Major Changes for Mitigation Bank Permitting
On April 2, 2026, Lee Forsgren, principal deputy assistant secretary of the Army for Civil Works, announced at the Environmental Council of the States (ECOS) Spring meeting that the Corps is moving toward a new nationwide permit (NWP) specifically designed for mitigation banking projects.
What’s expected to change:
The new NWP would not be bound by the current half-acre impact threshold. Forsgren was direct about the reasoning: mitigation banks exist to create positive environmental outcomes, not just to minimize harm, so the standard NWP limitations don’t fit. The Corps also signaled its intent to streamline bank permitting timelines and establish more realistic credit release schedules to improve economic viability for bank operators.
Additionally, the Corps is exploring whether mitigation banks could earn offset credits for preventing natural degradation — not just restoring damaged wetlands. Forsgren cited coastal wetland loss prevention work in Louisiana as a model, suggesting the approach could apply broadly across coastal states.
On the WOTUS front, the Corps and EPA expect to finalize their revised rule this summer, aligned with the Supreme Court’s Sackett v. EPA decision. The agencies are also developing a high-resolution mapping tool to delineate Waters of the United States within a meter of resolution, with an expected rollout in roughly 18 months.
These changes could meaningfully affect permitting timelines, credit generation, and regulatory planning for banks across Florida and the Southeast. MBG will continue to track this closely.
Questions about how these developments may affect your bank or project? Contact Victoria Bruce at victoria@mitigationbankinginc.com or 407-808-2222.
