Wetland mitigation banking is one of Florida’s most effective tools for restoring, protecting, and enhancing vital wetland ecosystems while providing compensatory mitigation for permitted impacts. However, permitting a wetland mitigation bank in Florida is a detailed, resource-intensive process that requires careful planning, technical expertise, and long-term commitment.
Mitigation banks are regulated through the Florida Department of Environmental Protection (FDEP) or one of the five Water Management Districts (WMDs), and may also involve the U.S. Army Corps of Engineers (USACE) for federal permitting. Banks can range in size from 300 acres to 25,000 acres, and the larger the bank, the more restoration potential—and ultimately, the more credit-generating value.
Site Selection and Restoration Goals
The key to success begins with the site. While it is not mandatory for a bank to be surrounded by conservation land, proximity to other conservation easements, state-owned land, or federal preserves can improve ecological value and increase the likelihood of permit approval.
Once a viable site is identified, restoration activities may include:
- Restoring historic drainage patterns by installing culverts
- Removing invasive species
- Replanting with native vegetation
- Implementing prescribed fire regimes
- Reestablishing hydrology to mimic natural conditions
The goal is to return the site to a self-sustaining, functional wetland system. Restoration activities are carefully evaluated and assigned a credit value, typically ranging from 0 to 1, based on anticipated ecological uplift.
Credit Calculation and Release Schedules
Mitigation credits are calculated by determining the delta (change in ecological quality). For example, if a property starts with a baseline score of 0.3 and is projected to improve to 0.6, the delta is 0.3. Multiply that by the acreage of the project—say, 500 acres—and you have a potential yield of 150 mitigation credits.
However, these credits are not released all at once. They are distributed incrementally over time, based on a credit release schedule that aligns with milestones in restoration performance. Typically, 10–20% of total credits may be released in the early years, with subsequent releases tied to site inspections, monitoring reports, and demonstrated ecological success.
Here is an example mitigation credit release schedule and photo from Florida Gulf Coast Mitigation Bank:
Jurisdiction, Competition, and Sales Strategy
Mitigation credits can only be sold within the same drainage basin as the project, and Florida has 86 recognized drainage basins within the five WMDs. This makes location a critical driver of credit demand and value.
It’s also important to note:
- Credit pricing is not regulated by federal or state agencies
- Market analysis is essential to evaluate competing banks in the same basin
- Average credit sales can range from less than 1 to more than 50 credits per year depending on location and demand
An understanding of historic credit absorption, permitting activity, and development trends is essential when evaluating potential return on investment.
Costs, Risks, and Permit Timelines
Permitting a mitigation bank is a long-term, capital-intensive process:
- State permits take an average of 2 years
- Federal permits can take up to 7 years
- Upfront costs typically reach $1 million or more before the first credit is released
While dual permitting (state and federal) is not required, it is highly recommended to expand the pool of eligible buyers—especially for impacts that involve both isolated wetlands and jurisdictional waters.
Despite the risks and costs, well-placed mitigation banks can generate significant long-term returns, particularly in high-growth areas or underserved drainage basins with limited credit availability.
Final Thoughts
At The Mitigation Banking Group, we’ve helped landowners across Florida successfully navigate the permitting process and develop mitigation banks that meet ecological goals while producing financial value. From feasibility studies and market analysis to agency coordination and credit sales, we are your partner every step of the way.
If you’re considering permitting a wetland mitigation bank in Florida, reach out to our team. We can help you evaluate your property’s potential and guide you through this complex but rewarding process.
