Florida Senate - 2025                              CS for SB 492
       
       
        
       By the Appropriations Committee on Agriculture, Environment, and
       General Government; and Senator McClain
       
       
       
       
       601-03466-25                                           2025492c1
    1                        A bill to be entitled                      
    2         An act relating to mitigation banks; amending s.
    3         373.4136, F.S.; beginning on a specified date,
    4         revising the schedule for credit release upon issuance
    5         of a mitigation bank credit permit; providing
    6         specifications for such schedule; authorizing a
    7         mitigation bank applicant to propose an alternative
    8         credit release schedule and requiring the Department
    9         of Environmental Protection or water management
   10         district to consider such credit release schedule;
   11         revising the results of the establishment of a
   12         mitigation bank service area; revising the projects or
   13         activities eligible to use credits released from a
   14         mitigation bank for certain purposes; authorizing a
   15         project applicant to receive a one-time use of certain
   16         credits in certain circumstances; providing
   17         requirements for a permit applicant if the number of
   18         released credits within a mitigation service area only
   19         partially offsets certain impacts; requiring the
   20         department and water management districts to apply a
   21         proximity factor in a specified manner to make a
   22         certain determination; specifying multipliers for such
   23         proximity factor; specifying that the use of certain
   24         multipliers meets certain requirements; requiring the
   25         department or water management district to contact
   26         certain mitigation banks and request a certain
   27         accounting within a specified timeframe after
   28         receiving a certain request from the applicant;
   29         prohibiting such accounting from including certain
   30         credits; providing that mitigation banks contacted by
   31         the department or water management district are
   32         allowed a specified timeframe to reply to such
   33         request; providing a presumption if a mitigation bank
   34         does not respond within a certain timeframe; requiring
   35         the department or water management district to make a
   36         certain determination upon receipt of the requested
   37         accounting; requiring the department or water
   38         management district to notify the applicant of such
   39         determination within a specified timeframe;
   40         authorizing only the permit applicant to rely on such
   41         determination for a specified timeframe and for
   42         specified purposes; beginning on a specified date and
   43         annually thereafter, requiring each mitigation bank in
   44         this state to submit a certain accounting to the
   45         department or water management district; providing
   46         requirements for such accounting; requiring the
   47         department or water management district to compile
   48         such accountings for a specified purpose and to submit
   49         a report that includes certain information to the
   50         Legislature on a specified date and annually
   51         thereafter; amending s. 704.06, F.S.; requiring
   52         certain water management districts, upon application
   53         by the owner of a parcel subject to a conservation
   54         easement, to release a conservation easement if
   55         specified conditions are met; providing for the
   56         valuation of the property for certain tax purposes
   57         upon such release; specifying that land released from
   58         the conservation easement may be used for development
   59         consistent with certain zoning; providing an effective
   60         date.
   61          
   62  Be It Enacted by the Legislature of the State of Florida:
   63  
   64         Section 1. Subsections (5) and (6) of section 373.4136,
   65  Florida Statutes, are amended to read:
   66         373.4136 Establishment and operation of mitigation banks.—
   67         (5) SCHEDULE FOR CREDIT RELEASE.—After July 1, 2025, when
   68  issuing awarding mitigation credits to a mitigation bank permit,
   69  the department or the water management district shall adhere to
   70  the credit release schedule set forth in this subsection a
   71  schedule for the release of those credits awarded by in the
   72  mitigation bank permit. A mitigation credit that has been
   73  released may be sold or used to offset adverse impacts from an
   74  activity regulated under this part.
   75         (a) Thirty percent of awarded credits shall be released for
   76  the recordation of the conservation easement and establishment
   77  of financial assurances required by the mitigation bank permit.
   78  If a preservation-only assessment area is used, 100 percent of
   79  awarded credits shall be released for the recordation of the
   80  conservation easement and establishment of financial assurances
   81  required by the mitigation bank permit The department or the
   82  water management district shall allow a portion of the
   83  mitigation credits awarded to a mitigation bank to be released
   84  for sale or use prior to meeting all of the performance criteria
   85  specified in the mitigation bank permit. The department or the
   86  water management district shall allow release of all of a
   87  mitigation bank’s awarded mitigation credits only after the bank
   88  meets the mitigation success criteria specified in the permit.
   89         (b) Thirty percent of awarded credits shall be released
   90  following completion of initial construction activities as
   91  established by the mitigation bank permit.
   92         (c) Twenty percent of awarded credits shall be released in
   93  increments as monitoring indicates interim performance criteria
   94  established by the mitigation bank permit are being met.
   95         (d) Twenty percent of awarded credits shall be released
   96  upon meeting final success criteria established by the
   97  mitigation bank permit The number of credits and schedule for
   98  release shall be determined by the department or water
   99  management district based upon the performance criteria for the
  100  mitigation bank and the success criteria for each mitigation
  101  activity. The release schedule for a specific mitigation bank or
  102  phase thereof shall be related to the actions required to
  103  implement the bank, such as site protection, site preparation,
  104  earthwork, removal of wastes, planting, removal or control of
  105  nuisance and exotic species, installation of structures, and
  106  annual monitoring and management requirements for success. In
  107  determining the specific release schedule for a bank, the
  108  department or water management district shall consider, at a
  109  minimum, the following factors:
  110         1. Whether the mitigation consists solely of preservation
  111  or includes other types of mitigation.
  112         2. The length of time anticipated to be required before a
  113  determination of success can be achieved.
  114         3. The ecological value to be gained from each action
  115  required to implement the bank.
  116         4. The financial expenditure required for each action to
  117  implement the bank.
  118         (e)The mitigation bank applicant may propose an
  119  alternative credit release schedule and the department or water
  120  management district shall consider the proposed alternative
  121  credit release schedule.
  122         (f)(c) Notwithstanding the provisions of this subsection, a
  123  mitigation no credit may not shall be released for freshwater
  124  wetland creation until the success criteria established included
  125  in the mitigation bank permit for initial construction
  126  activities are met.
  127         (g)(d) The withdrawal of mitigation credits from a
  128  mitigation bank shall be accomplished as a minor modification of
  129  the mitigation bank permit. A processing fee is not shall not be
  130  required by the department or water management district for this
  131  minor modification.
  132         (6) MITIGATION SERVICE AREA.—The department or water
  133  management district shall establish a mitigation service area
  134  for each mitigation bank permit. The department or water
  135  management district shall notify and consider comments received
  136  on the proposed mitigation service area from each local
  137  government within the proposed mitigation service area. Except
  138  as provided in this section herein, mitigation credits may be
  139  withdrawn and used only to offset adverse impacts in the
  140  mitigation service area. The boundaries of the mitigation
  141  service area shall depend upon the geographic area where the
  142  mitigation bank could reasonably be expected to offset adverse
  143  impacts. Mitigation service areas may overlap, and mitigation
  144  service areas for two or more mitigation banks may be approved
  145  for a regional watershed.
  146         (a) In determining the boundaries of the mitigation service
  147  area, the department or the water management district shall
  148  consider the characteristics, size, and location of the
  149  mitigation bank and, at a minimum, the extent to which the
  150  mitigation bank:
  151         1. Contributes to a regional integrated ecological network;
  152         2. Will significantly enhance the water quality or
  153  restoration of an offsite receiving water body that is
  154  designated as an Outstanding Florida Water, a Wild and Scenic
  155  River, an aquatic preserve, a water body designated in a plan
  156  approved pursuant to the Surface Water Improvement and
  157  Management Act, or a nationally designated estuarine preserve;
  158         3. Will provide for the long-term viability of endangered
  159  or threatened species or species of special concern;
  160         4. Is consistent with the objectives of a regional
  161  management plan adopted or endorsed by the department or water
  162  management districts; and
  163         5. Can reasonably be expected to offset specific types of
  164  wetland impacts within a specific geographic area. A mitigation
  165  bank need not be able to offset all expected impacts within its
  166  service area.
  167         (b) The department and water management districts shall use
  168  regional watersheds to guide the establishment of mitigation
  169  service areas. Drainage basins established pursuant to s.
  170  373.414(8) may be used as regional watersheds when they are
  171  established based on the hydrological or ecological
  172  characteristics of the basin. A mitigation service area may
  173  extend beyond the regional watershed in which the bank is
  174  located into all or part of other regional watersheds when the
  175  mitigation bank has the ability to offset adverse impacts
  176  outside that regional watershed. Similarly, a mitigation service
  177  area may be smaller than the regional watershed in which the
  178  mitigation bank is located when adverse impacts throughout the
  179  regional watershed cannot reasonably be expected to be offset by
  180  the mitigation bank because of local ecological or hydrological
  181  conditions.
  182         (c) Once a mitigation bank service area has been
  183  established by the department or a water management district for
  184  a mitigation bank, such mitigation bank shall be deemed to
  185  implement a plan that provides regional ecological value; such
  186  service area shall be accepted by all water management
  187  districts, local governments, and the department; and the use of
  188  credits from such mitigation bank to offset impacts within that
  189  bank’s service area shall be considered to have met the
  190  cumulative impact requirements of s. 373.414(8)(a).
  191         (d) If the requirements in s. 373.414(1)(b) and (8) are
  192  met, the following projects or activities regulated under this
  193  part shall be eligible to use credits released from a mitigation
  194  bank to offset impacts resulting from such projects or
  195  activities a mitigation bank, regardless of whether they are
  196  located within the mitigation service area:
  197         1. Projects with adverse impacts partially located within
  198  the mitigation service area.
  199         2. Linear projects, such as roadways, transmission lines,
  200  distribution lines, pipelines, railways, or seaports listed in
  201  s. 311.09(1).
  202         3. Projects with total adverse impacts of less than 1 acre
  203  in size.
  204         4. Projects that meet the requirements of s. 373.414(1)(b)
  205  and the criteria in paragraphs (e)-(g).
  206         (e) If the requirements of s. 373.414(1)(a) are met and an
  207  insufficient number or type of credits from banks whose
  208  permitted service area overlays in whole or in part the regional
  209  watershed in which the impacts occur, the project applicant is
  210  entitled to a one-time use of credits released from a mitigation
  211  bank outside the mitigation bank service area to offset impacts
  212  pursuant to s. 373.414(1)(b), as established by the procedure in
  213  paragraph (g), and upon verification by the department or water
  214  management district that mitigation banks within the regional
  215  watershed in which the adverse impacts are located lack the
  216  appropriate credit type to offset impacts associated with the
  217  proposed project. If the number of released credits within a
  218  mitigation service area only partially offsets the impacts
  219  associated with a proposed project in the mitigation service
  220  area, the permit applicant may only use out-of-service-area
  221  credits to account for the difference between the released
  222  credits available in the mitigation bank service area and the
  223  credits required to offset the impacts associated with the
  224  proposed project. In implementing this subsection, the
  225  department and water management districts shall apply a
  226  proximity factor to determine adequate compensatory mitigation
  227  as follows:
  228         1. A 1.0 multiplier shall be applied for use of in-kind
  229  credits within any regional watershed overlain in whole or in
  230  part by the service area.
  231         2. A 1.0 multiplier shall be applied for use of in-kind and
  232  out-of-service-area credits when the service area overlays part
  233  of the same regional watershed as the proposed impacts.
  234         3. A 1.2 multiplier shall be applied for use of in-kind and
  235  out-of-service-area credits located within a regional watershed
  236  immediately adjacent to the regional watershed overlain by a
  237  bank service area in which proposed impacts are located.
  238         4. When in-kind credits are not available to offset impacts
  239  in the regional watershed immediately adjacent to the regional
  240  watershed overlain by a bank service area in which the proposed
  241  impacts are located, as established by the procedure in
  242  paragraph (g), an additional 0.25 multiplier shall be applied
  243  for each additional regional watershed boundary crossed.
  244         5. An additional 0.50 multiplier shall be applied after any
  245  multipliers required in subparagraphs 1., 2., 3., and 4., if the
  246  mitigation used to offset impacts entails out-of-kind
  247  replacement which does not replace the same type of freshwater
  248  wetland or fresh surface water impacted.
  249         (f) Use of the multipliers in subparagraphs (e)2.-4. meets
  250  the requirements of s. 373.414(8)(a) for addressing cumulative
  251  impacts.
  252         (g) Once a permit applicant requests to use out-of-service
  253  area or out-of-kind credits, the department or water management
  254  district shall contact all mitigation banks with a mitigation
  255  service area encompassing the location of the proposed impacts
  256  within 3 business days after receipt of the request from the
  257  permit applicant and request an accounting of available credits.
  258  The accounting may not include credits reserved for other permit
  259  applicants. The mitigation banks contacted by the department or
  260  water management district shall be allowed 15 business days
  261  after receipt of the request by the department or water
  262  management district to reply to such request. If a mitigation
  263  bank does not reply within the 15 business day timeframe, it is
  264  presumed credits are not available. Upon receipt of the
  265  accounting from the mitigation banks, the department or water
  266  management district shall determine if sufficient credits are
  267  available to offset impacts associated with the proposed project
  268  and notify the permit applicant of such determination within 15
  269  business days. The permit applicant, and no other entity, may
  270  rely on the determination from the department or water
  271  management district for a period of 1 year beginning on the date
  272  the department or water management district notifies the permit
  273  applicant of such determination, but only for purposes relating
  274  to the pending application producing such determination and not
  275  any extensions, nor renewals, nor modifications of any permit
  276  issued pursuant to that pending application, nor for any other
  277  permit application.
  278         (h) Beginning July 1, 2026, and each July 1 thereafter,
  279  each mitigation bank in this state shall submit to the
  280  department or water management district an accounting of the
  281  number and type of credits the mitigation bank has available for
  282  sale. The accounting may not include names of parties for which
  283  credits have been reserved or the contract price paid for the
  284  credits. The department or water management district shall
  285  compile the information to provide an assessment of this state’s
  286  mitigation banking system and submit a report to the President
  287  of the Senate and the Speaker of the House of Representatives on
  288  October 1, 2026, and each October 1 thereafter.
  289         Section 2. Subsection (14) is added to section 704.06,
  290  Florida Statutes, to read:
  291         704.06 Conservation easements; creation; acquisition;
  292  enforcement.—
  293         (14)(a) Upon application by the fee simple owner of a
  294  parcel of land subject to a conservation easement to a water
  295  management district, a water management district shall release
  296  the conservation easement if the following conditions are met:
  297         1. The land subject to the easement is less than 15 acres
  298  and is bordered on three or more sides by impervious surfaces;
  299         2. Any undeveloped adjacent parcels of land are less than
  300  15 acres and similarly bordered on three or more sides by
  301  impervious surfaces;
  302         3. The land contains no historical, architectural,
  303  archeological, or cultural significance; and
  304         4. Before the release of the conservation easement, the
  305  applicant must have secured sufficient mitigation credits using
  306  the uniform mitigation assessment method from a mitigation bank
  307  located in this state to offset the loss of wetlands located on
  308  the land subject to the conservation easement.
  309         (b) Upon the water management district’s release of the
  310  conservation easement, the ad valorem taxes on the property
  311  shall be based on the just value of the property, and the
  312  property may be used for development consistent with the zoning
  313  designation of the adjacent lands.
  314         Section 3. This act shall take effect July 1, 2025.