Florida’s Mitigation Banking Bill Signed Into Law: What SB 492 Means for Credit Supply, Markets, and MBG Clients
On June 26, 2025, Governor Ron DeSantis signed Senate Bill 492 (CS/CS/SB 492) into law, a significant win for Florida’s mitigation banking industry and a welcome solution for persistent credit deficiencies in constrained watersheds.
This legislative update provides much-needed clarity, stability, and flexibility for mitigation credit releases, while also addressing how credits can be used across regional watershed boundaries when supply falls short. For landowners, developers, environmental consultants, and mitigation bankers, this is a long-overdue policy shift that strengthens Florida’s ability to support infrastructure growth and environmental restoration in tandem.
The law goes into effect July 1, 2025, and I’m encouraged by the collaborative work that went into making this bill a reality.
Standardized Credit Release Schedule
For years, mitigation bankers have called for a more predictable and transparent process for how and when credits are released. Under SB 492, a statewide credit release schedule has been adopted that aligns more closely with real-world restoration timelines and upfront investments.
Unless an applicant proposes an alternative schedule, the following structure will apply:
- 30% upon recording a conservation easement and establishing financial assurances(100% for preservation-only assessment areas)
- 30% after initial construction activities are completed
- 20% upon meeting interim performance criteria
- 20% upon achieving final success criteria
This approach provides earlier access to credits, helping bankers recover initial costs sooner and reinvest in site success. It also supports financial predictability for buyers who depend on reliable timelines.
Improved Flexibility with the Proximity Factor
Another major highlight of the new law is the revision of the proximity multiplier system, which determines how mitigation credits may be used outside of a bank’s service area when no in-kind credits are available locally.
Key highlights include:
- 1.0 multiplier for in-kind credits used within the bank’s service area
- 1.0 multiplier for in-kind, out-of-service-area credits within the same regional watershed (after credit deficiency is documented)
- 1.2 multiplier for adjacent regional watersheds (only if no credits are available in the impacted watershed)
- Additional 0.25 per watershed crossed beyond adjacent areas
- Additional 0.50 multiplier applied when the credit type is out-of-kind
This framework balances ecological integrity with real-world credit availability. It recognizes that when no suitable in-kind credits exist within a service area or regional watershed, responsible and appropriately adjusted out-of-service mitigation may still be a valuable tool.
Why This Matters to MBG Clients
At The Mitigation Banking Group, we represent landowners, developers, and mitigation bankers across Florida who rely on timely, strategic solutions to advance both economic development and environmental protection. SB 492 helps deliver on that promise.
This law will:
- Make credit planning more reliable across the lifecycle of a bank
- Increase credit availability in underserved regions
- Enable more cost-effective project permitting in credit-deficient watersheds
- Support more durable and scalable mitigation solutions statewide
These changes also reinforce the importance of thorough market analysis and feasibility planning, two of MBG’s core service areas.
View Official Florida Law (Chapter 2025-191)
Final Thoughts
This is a huge step forward for Florida’s mitigation banking community. It demonstrates that lawmakers recognize the complexity of this industry and the need for clear, implementable policies. I want to thank the legislators, industry leaders, and stakeholders who worked to bring this across the finish line.
If you have questions about how SB 492 might impact your project, property, or credit strategy, feel free to contact me directly. At MBG, we’re committed to staying at the forefront of every policy shift—so you don’t have to.
