Florida Senate - 2025                       CS for CS for SB 492
       
       
        
       By the Committee on Rules; the Appropriations Committee on
       Agriculture, Environment, and General Government; and Senator
       McClain
       
       
       
       595-03803-25                                           2025492c2
    1                        A bill to be entitled                      
    2         An act relating to land development; 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; requiring the Department of
    9         Environmental Protection or water management district
   10         to modify an existing permitted credit release
   11         schedule upon request under certain circumstances;
   12         prohibiting mitigation credits from being released for
   13         freshwater wetland creation until certain conditions
   14         are met; authorizing one-time use of mitigation
   15         credits outside the mitigation bank service area in
   16         certain circumstances; requiring the department and
   17         water management districts to apply proximity factor
   18         multipliers in a specified manner; specifying that the
   19         use of certain multipliers meets certain requirements;
   20         requiring the department or water management district
   21         to request an accounting of credit availability from
   22         mitigation banks within a specified timeframe;
   23         specifying the timeframe to reply to such request;
   24         requiring the permit applicant to be notified of
   25         credits available; providing a presumption if a
   26         mitigation bank does not respond within a certain
   27         timeframe; limiting the timeframe for the permit
   28         applicant to rely on a credit availability
   29         determination for specified purposes; requiring each
   30         mitigation bank to submit an accounting of credits;
   31         requiring the department or water management district
   32         to compile such accountings for a specified purpose
   33         and to submit a report including certain information
   34         to the Legislature on a specified date and annually
   35         thereafter; providing an effective date.
   36          
   37  Be It Enacted by the Legislature of the State of Florida:
   38  
   39         Section 1. Subsections (5) and (6) of section 373.4136,
   40  Florida Statutes, are amended to read:
   41         373.4136 Establishment and operation of mitigation banks.—
   42         (5) SCHEDULE FOR CREDIT RELEASE.—After July 1, 2025, when
   43  issuing awarding mitigation credits to a mitigation bank permit,
   44  the department or the water management district shall adhere to
   45  the credit release schedule set forth in paragraph (a) a
   46  schedule for the release of those credits awarded by in the
   47  mitigation bank permit. A mitigation credit that has been
   48  released may be sold or used to offset adverse impacts from an
   49  activity regulated under this part.
   50         (a)1. Thirty percent of awarded credits shall be released
   51  upon the recordation of the conservation easement and
   52  establishment of financial assurances required by the mitigation
   53  bank permit. If a preservation-only assessment area is used, 100
   54  percent of awarded credits shall be released for the recordation
   55  of the conservation easement and establishment of financial
   56  assurances required by the mitigation bank permit.
   57         2. Thirty percent of awarded credits shall be released
   58  following completion of initial construction activities as
   59  established by the mitigation bank permit.
   60         3. Twenty percent of awarded credits shall be released in
   61  increments as monitoring indicates interim performance criteria
   62  established by the mitigation bank permit are being met.
   63         4. Twenty percent of awarded credits shall be released upon
   64  meeting final success criteria established by the mitigation
   65  bank permit.
   66         (b)The mitigation bank applicant may propose an
   67  alternative credit release schedule and the department or water
   68  management district shall consider the proposed alternative
   69  credit release schedule.
   70         (c)Upon request by a mitigation bank permittee for
   71  modification of the credit release schedule of a permitted
   72  mitigation bank, the department or relevant water management
   73  district shall modify the credit release schedule to conform it
   74  to paragraph (a) if such permitted mitigation bank has not yet
   75  had mitigation credits released for the completion of
   76  construction activities. The department or water management
   77  district may not alter, change, or modify any other provision of
   78  the mitigation bank permit unrelated to the credit release
   79  schedule The department or the water management district shall
   80  allow a portion of the mitigation credits awarded to a
   81  mitigation bank to be released for sale or use prior to meeting
   82  all of the performance criteria specified in the mitigation bank
   83  permit. The department or the water management district shall
   84  allow release of all of a mitigation bank’s awarded mitigation
   85  credits only after the bank meets the mitigation success
   86  criteria specified in the permit.
   87         (b)The number of credits and schedule for release shall be
   88  determined by the department or water management district based
   89  upon the performance criteria for the mitigation bank and the
   90  success criteria for each mitigation activity. The release
   91  schedule for a specific mitigation bank or phase thereof shall
   92  be related to the actions required to implement the bank, such
   93  as site protection, site preparation, earthwork, removal of
   94  wastes, planting, removal or control of nuisance and exotic
   95  species, installation of structures, and annual monitoring and
   96  management requirements for success. In determining the specific
   97  release schedule for a bank, the department or water management
   98  district shall consider, at a minimum, the following factors:
   99         1. Whether the mitigation consists solely of preservation
  100  or includes other types of mitigation.
  101         2. The length of time anticipated to be required before a
  102  determination of success can be achieved.
  103         3. The ecological value to be gained from each action
  104  required to implement the bank.
  105         4. The financial expenditure required for each action to
  106  implement the bank.
  107         (d)(c) Notwithstanding the provisions of this subsection, a
  108  mitigation no credit may not shall be released for freshwater
  109  wetland creation until the success criteria established included
  110  in the mitigation bank permit for initial construction
  111  activities are met.
  112         (e)(d) The withdrawal of mitigation credits from a
  113  mitigation bank shall be accomplished as a minor modification of
  114  the mitigation bank permit. A processing fee is not shall not be
  115  required by the department or water management district for this
  116  minor modification.
  117         (6) MITIGATION SERVICE AREA.—The department or water
  118  management district shall establish a mitigation service area
  119  for each mitigation bank permit. The department or water
  120  management district shall notify and consider comments received
  121  on the proposed mitigation service area from each local
  122  government within the proposed mitigation service area. Except
  123  as provided in this section herein, mitigation credits may be
  124  withdrawn and used only to offset adverse impacts in the
  125  mitigation service area. The boundaries of the mitigation
  126  service area shall depend upon the geographic area where the
  127  mitigation bank could reasonably be expected to offset adverse
  128  impacts. Mitigation service areas may overlap, and mitigation
  129  service areas for two or more mitigation banks may be approved
  130  for a regional watershed.
  131         (a) In determining the boundaries of the mitigation service
  132  area, the department or the water management district shall
  133  consider the characteristics, size, and location of the
  134  mitigation bank and, at a minimum, the extent to which the
  135  mitigation bank:
  136         1. Contributes to a regional integrated ecological network;
  137         2. Will significantly enhance the water quality or
  138  restoration of an offsite receiving water body that is
  139  designated as an Outstanding Florida Water, a Wild and Scenic
  140  River, an aquatic preserve, a water body designated in a plan
  141  approved pursuant to the Surface Water Improvement and
  142  Management Act, or a nationally designated estuarine preserve;
  143         3. Will provide for the long-term viability of endangered
  144  or threatened species or species of special concern;
  145         4. Is consistent with the objectives of a regional
  146  management plan adopted or endorsed by the department or water
  147  management districts; and
  148         5. Can reasonably be expected to offset specific types of
  149  wetland impacts within a specific geographic area. A mitigation
  150  bank need not be able to offset all expected impacts within its
  151  service area.
  152         (b) The department and water management districts shall use
  153  regional watersheds to guide the establishment of mitigation
  154  service areas. Drainage basins established pursuant to s.
  155  373.414(8) may be used as regional watersheds when they are
  156  established based on the hydrological or ecological
  157  characteristics of the basin. A mitigation service area may
  158  extend beyond the regional watershed in which the bank is
  159  located into all or part of other regional watersheds when the
  160  mitigation bank has the ability to offset adverse impacts
  161  outside that regional watershed. Similarly, a mitigation service
  162  area may be smaller than the regional watershed in which the
  163  mitigation bank is located when adverse impacts throughout the
  164  regional watershed cannot reasonably be expected to be offset by
  165  the mitigation bank because of local ecological or hydrological
  166  conditions.
  167         (c) Once a mitigation bank service area has been
  168  established by the department or a water management district for
  169  a mitigation bank, such mitigation bank shall be deemed to
  170  implement a plan that provides regional ecological value; such
  171  service area shall be accepted by all water management
  172  districts, local governments, and the department; and the use of
  173  credits from such mitigation bank to offset impacts within that
  174  bank’s service area shall be considered to have met the
  175  cumulative impact requirements of s. 373.414(8)(a).
  176         (d) If the provisions of requirements in s. 373.414(1)(b)
  177  and (8) are met and an insufficient number or type of credits
  178  from banks whose permitted service area overlays in whole or in
  179  part the regional watershed in which the impacts occur, the
  180  permit applicant is entitled to a one-time use of credits
  181  released from a mitigation bank outside the mitigation bank
  182  service area to offset impacts pursuant to s. 373.414(1)(b), as
  183  established by the procedure in paragraph (f). The department or
  184  water management district must have determined that the
  185  mitigation service area lacked the appropriate credit type and
  186  the implementation of permittee-responsible mitigation was not
  187  sufficient to offset impacts associated with the proposed
  188  project. Priority must be given to mitigation banks whose
  189  permitted service area fully includes the impacted site. If the
  190  number of released credits within a mitigation service area only
  191  partially offsets the impacts associated with a proposed project
  192  in the mitigation service area, the permit applicant may only
  193  use out-of-service-area credits to account for the difference
  194  between the released credits available in the mitigation bank
  195  service area and the credits required to offset the impacts
  196  associated with the proposed project. In implementing this
  197  subsection, the department and water management districts shall
  198  apply a proximity factor to determine adequate compensatory
  199  mitigation as follows:
  200         1. A 1.0 multiplier shall be applied for use of in-kind
  201  credits within the service area.
  202         2. A 1.0 multiplier shall be applied for use of in-kind and
  203  out-of-service-area credits when the service area overlays part
  204  of the same regional watershed as the proposed impacts only
  205  after credit-deficiency has been established by the procedure
  206  set forth in paragraph (f).
  207         3. A 1.2 multiplier shall be applied for use of in-kind and
  208  out-of-service-area credits located within a regional watershed
  209  immediately adjacent to the regional watershed overlain by a
  210  bank service area in which proposed impacts are located only
  211  after credit-deficiency has been established by the procedure
  212  set forth in paragraph (f).
  213         4. When in-kind credits are not available to offset impacts
  214  in the regional watershed immediately adjacent to the regional
  215  watershed overlain by a mitigation bank service area in which
  216  the proposed impacts are located, an additional 0.25 multiplier
  217  shall be applied for each additional regional watershed boundary
  218  crossed only after credit-deficiency has been established by the
  219  procedure set forth in paragraph (f).
  220         5. An additional 0.50 multiplier shall be applied after any
  221  multipliers required in subparagraphs 1.-4., if the mitigation
  222  used to offset impacts entails out-of-kind replacement.
  223         (e)Use of the multipliers in subparagraphs (d)2., 3., 4.,
  224  and 5. meets the requirements of s. 373.414(8)(a) for addressing
  225  cumulative impacts.
  226         (f)Once the amount of mitigation required to offset
  227  impacts has been determined, and the department or water
  228  management district determines that out-of-service-area or out
  229  of-kind mitigation is necessary, the department or water
  230  management district shall contact all mitigation banks with a
  231  mitigation service area encompassing the location of the
  232  proposed impacts within 7 business days after receipt of the
  233  request from the permit applicant and request an accounting of
  234  available credits, including out-of-kind credits. The accounting
  235  may not include credits reserved for other permit applicants.
  236  The mitigation banks contacted by the department or water
  237  management district shall be allowed 15 business days after
  238  receipt of the request by the department or water management
  239  district to reply to such request. If one or more mitigation
  240  banks replying to the request notifies the department or the
  241  water management district that out-of-kind credits are available
  242  to offset the proposed impact and the department or a water
  243  management district determines that such out-of-kind credits are
  244  appropriate to offset all or part of the proposed impact, the
  245  department or the water management district shall notify the
  246  permit applicant that sufficient credits are available within
  247  that bank’s service area to offset the proposed impacts and the
  248  use of credits from another mitigation bank outside of that
  249  other mitigation bank’s service area may not occur until use of
  250  all of the out-of-kind credits occurs as allowed by the
  251  department or water management district. If a mitigation bank
  252  does not reply within the 15 business day timeframe, it is
  253  presumed credits from that bank are not available. Upon receipt
  254  of the accounting from the mitigation banks, the department or
  255  water management district shall determine if sufficient credits
  256  are available to offset impacts associated with the proposed
  257  project and notify the permit applicant of such determination
  258  within 15 business days. The permit applicant, and no other
  259  entity, may rely on the determination from the department or
  260  water management district for a period of 6 months beginning on
  261  the date the department or water management district notifies
  262  the permit applicant of such determination, but only for
  263  purposes relating to the pending application producing such
  264  determination and not any extensions, nor renewals, nor
  265  modifications of any permit issued pursuant to that pending
  266  application, nor for any other permit application.
  267         (g) Beginning July 1, 2026, and each July 1 thereafter,
  268  each mitigation bank in this state shall submit to the
  269  department or water management district an accounting of the
  270  number and type of credits the mitigation bank has available for
  271  sale. The accounting may not include names of parties for which
  272  credits have been reserved or the contract price paid for the
  273  credits. The department or water management district shall
  274  compile the information to provide an assessment of this state’s
  275  mitigation banking system and submit a report to the President
  276  of the Senate and the Speaker of the House of Representatives on
  277  October 1, 2026, and each October 1 thereafter, the following
  278  projects or activities regulated under this part shall be
  279  eligible to use a mitigation bank, regardless of whether they
  280  are located within the mitigation service area:
  281         1. Projects with adverse impacts partially located within
  282  the mitigation service area.
  283         2. Linear projects, such as roadways, transmission lines,
  284  distribution lines, pipelines, railways, or seaports listed in
  285  s. 311.09(1).
  286         3. Projects with total adverse impacts of less than 1 acre
  287  in size.
  288         Section 2. This act shall take effect July 1, 2025.