Florida Senate - 2026                              CS for SB 848
       
       
        
       By the Committee on Environment and Natural Resources; and
       Senator Truenow
       
       
       
       
       592-01912-26                                           2026848c1
    1                        A bill to be entitled                      
    2         An act relating to stormwater treatment; amending s.
    3         373.019, F.S.; defining the terms “compensating
    4         stormwater treatment” and “total land area”; amending
    5         s. 373.4134, F.S.; revising legislative findings;
    6         requiring compensating stormwater treatment to comply
    7         with certain provisions unless certain circumstances
    8         exist; authorizing entities to apply for a water
    9         quality enhancement area provisional permit under
   10         certain circumstances; requiring the Department of
   11         Environmental Protection to issue such provisional
   12         permit if certain criteria are met; requiring the
   13         department to allow the use of enhancement credits
   14         from a water quality enhancement area established
   15         under a provisional permit; requiring a water
   16         management district issuing an environmental resource
   17         permit to certain applicants to allow such applicants
   18         to use enhancement credits under certain
   19         circumstances; authorizing the department to modify a
   20         water quality enhancement area provisional permit
   21         after the adoption of certain rules; requiring the
   22         department and water management districts to recognize
   23         any enhancement credit used from a water quality
   24         enhancement area established pursuant to a provisional
   25         permit; amending s. 373.414, F.S.; clarifying the
   26         types of mitigation measures for compensating
   27         stormwater treatment which the department or a water
   28         management district governing board must consider
   29         under certain circumstances; authorizing mitigation
   30         measures or enhancement credits intended to address
   31         certain impacts to be generated by third parties and
   32         sold and transferred to environmental resource permit
   33         applicants pursuant to specified provisions;
   34         requiring, beginning on a specified date, that public
   35         landowners direct private entities to cease certain
   36         activities upon a certain determination by the
   37         department; providing applicability; authorizing a
   38         public landowner to allow a private entity to resume
   39         compensatory stormwater treatment activities on public
   40         lands upon a certain final agency action determination
   41         by the department or final determination of a water
   42         management district; amending ss. 373.036, 373.250,
   43         373.421, 403.813, and 556.102, F.S.; conforming cross
   44         references; reenacting s. 373.4136(6)(d), F.S.,
   45         relating to establishment and operation of mitigation
   46         banks, to incorporate the amendment made to s.
   47         373.414, F.S., in a reference thereto; providing an
   48         effective date.
   49          
   50  Be It Enacted by the Legislature of the State of Florida:
   51  
   52         Section 1. Present subsections (4) through (21) and (22)
   53  through (28) of section 373.019, Florida Statutes, are
   54  redesignated as subsections (5) through (22) and (24) through
   55  (30), respectively, and new subsections (4) and (23) are added
   56  to that section, to read:
   57         373.019 Definitions.—When appearing in this chapter or in
   58  any rule, regulation, or order adopted pursuant thereto, the
   59  term:
   60         (4) “Compensating stormwater treatment” means a method of
   61  stormwater treatment for discharges from more than two parcels,
   62  implemented in accordance with the conditions established in s.
   63  373.4134.
   64         (23)“Total land area” means land holdings under common
   65  ownership which are contiguous, or land holdings served by
   66  common surface water management facilities.
   67         Section 2. Present paragraphs (d) through (g) of subsection
   68  (3) of section 373.4134, Florida Statutes, are redesignated as
   69  paragraphs (e) through (h), respectively, a new paragraph (d) is
   70  added to that subsection, and paragraph (e) of subsection (1)
   71  and subsection (9) of that section are amended, to read:
   72         373.4134 Water quality enhancement areas.—
   73         (1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds
   74  that:
   75         (e) Water quality enhancement areas that provide water
   76  quality enhancement credits to applicants seeking permits under
   77  ss. 373.403-373.443 and to governmental entities seeking to meet
   78  an assigned basin management action plan allocation or
   79  reasonable assurance plan under s. 403.067 are considered an
   80  appropriate and permittable option. The use of an enhancement
   81  credit as specified herein transfers the legal responsibility
   82  for complying with the applicable regulatory water quality
   83  treatment requirement from the purchaser and user of such
   84  enhancement credit to the generator of such enhancement credit.
   85  The transfer of legal responsibility for complying with
   86  applicable regulatory water quality treatment requirements does
   87  not occur outside of the use of enhancement credits.
   88         (3) WATER QUALITY ENHANCEMENT AREAS.—
   89         (d)Compensating stormwater treatment must comply with this
   90  section unless:
   91         1.The treatment and discharging parcels are owned,
   92  operated, and maintained by the same entity; or
   93         2.The area providing compensating stormwater treatment
   94  receives stormwater discharge directly from parcels within the
   95  total land area and treats the discharge before such discharge
   96  flows off the parcel on which the compensating stormwater
   97  treatment occurs.
   98         (9) RULES.—The department shall adopt rules to implement
   99  this section. Pending the adoption of rules to implement this
  100  section, entities may apply for a water quality enhancement area
  101  provisional permit. The department must issue a water quality
  102  enhancement area provisional permit in response to such
  103  application if the applicant meets the statutory criteria of
  104  this section. The department shall allow the use of such
  105  enhancement credits from a water quality enhancement area
  106  established under a provisional permit as provided in this
  107  section and subject to compliance with s. 373.4134.
  108  Notwithstanding any other provision of law or rule, a water
  109  management district issuing an environmental resource permit to
  110  applicants seeking to satisfy environmental resource permit
  111  performance standards must allow such applicants to use
  112  enhancement credits if the department has issued a provisional
  113  permit for the water quality enhancement area from which the
  114  enhancement credits are generated. After the department adopts
  115  rules to implement this section, the department may modify an
  116  issued water quality enhancement area provisional permit to
  117  conform such permit to such adopted rules. Any enhancement
  118  credit used from a water quality enhancement area established
  119  pursuant to a provisional permit must continue to be recognized
  120  by the department and water management districts without change,
  121  regardless of whether the provisional permit is subsequently
  122  modified to conform to the adopted This section may not be
  123  implemented until the department adopts such rules.
  124         Section 3. Paragraph (b) of subsection (1) of section
  125  373.414, Florida Statutes, is amended to read:
  126         373.414 Additional criteria for activities in surface
  127  waters and wetlands.—
  128         (1) As part of an applicant’s demonstration that an
  129  activity regulated under this part will not be harmful to the
  130  water resources or will not be inconsistent with the overall
  131  objectives of the district, the governing board or the
  132  department shall require the applicant to provide reasonable
  133  assurance that state water quality standards applicable to
  134  waters as defined in s. 403.031 will not be violated and
  135  reasonable assurance that such activity in, on, or over surface
  136  waters or wetlands, as delineated in s. 373.421(1), is not
  137  contrary to the public interest. However, if such an activity
  138  significantly degrades or is within an Outstanding Florida
  139  Water, as provided by department rule, the applicant must
  140  provide reasonable assurance that the proposed activity will be
  141  clearly in the public interest.
  142         (b) If the applicant is unable to otherwise meet the
  143  criteria set forth in this subsection, the governing board or
  144  the department, in deciding to grant or deny a permit, must
  145  consider measures proposed by or acceptable to the applicant to
  146  mitigate adverse effects that may be caused by the regulated
  147  activity. Such measures may include, but are not limited to,
  148  onsite mitigation, offsite mitigation, offsite regional
  149  mitigation, and the purchase of mitigation credits from
  150  mitigation banks permitted under s. 373.4136. It is the
  151  responsibility of the applicant to choose the form of
  152  mitigation. The mitigation must offset the adverse effects
  153  caused by the regulated activity.
  154         1. The department or water management districts may accept
  155  the donation of money as mitigation only where the donation is
  156  specified for use in a duly noticed environmental creation,
  157  preservation, enhancement, or restoration project, endorsed by
  158  the department or the governing board of the water management
  159  district, which offsets the impacts of the activity permitted
  160  under this part. However, this subsection does not apply to
  161  projects undertaken pursuant to s. 373.4137 or chapter 378.
  162  Where a permit is required under this part to implement any
  163  project endorsed by the department or a water management
  164  district, all necessary permits must be have been issued before
  165  prior to the acceptance of any cash donation. After the
  166  effective date of this act, when money is donated to either the
  167  department or a water management district to offset impacts
  168  authorized by a permit under this part, the department or the
  169  water management district shall accept only a donation that
  170  represents the full cost to the department or water management
  171  district of undertaking the project that is intended to mitigate
  172  the adverse impacts. The full cost shall include all direct and
  173  indirect costs, as applicable, such as those for land
  174  acquisition, land restoration or enhancement, perpetual land
  175  management, and general overhead consisting of costs such as
  176  staff time, building, and vehicles. The department or the water
  177  management district may use a multiplier or percentage to add to
  178  other direct or indirect costs to estimate general overhead.
  179  Mitigation credit for such a donation may be given only to the
  180  extent that the donation covers the full cost to the agency of
  181  undertaking the project intended to mitigate the adverse
  182  impacts. However, nothing herein may be construed to prevent the
  183  department or a water management district from accepting a
  184  donation representing a portion of a larger project, provided
  185  that the donation covers the full cost of that portion and
  186  mitigation credit is given only for that portion. The department
  187  or water management district may deviate from the full cost
  188  requirements of this subparagraph to resolve a proceeding
  189  brought pursuant to chapter 70 or a claim for inverse
  190  condemnation. Nothing in This section may not be construed to
  191  require the owner of a private mitigation bank, permitted under
  192  s. 373.4136, to include the full cost of a mitigation credit in
  193  the price of the credit to a purchaser of such said credit.
  194         2. The department and each water management district shall
  195  report by March 1 of each year, as part of the consolidated
  196  annual report required by s. 373.036(7), all cash donations
  197  accepted under subparagraph 1. during the preceding water
  198  management district fiscal year for wetland mitigation purposes.
  199  The report must exclude those contributions pursuant to s.
  200  373.4137. The report must include a description of the endorsed
  201  mitigation projects and, except for projects governed by s.
  202  373.4135(6), must address, as applicable, success criteria,
  203  project implementation status and timeframe, monitoring, long
  204  term management, provisions for preservation, and full cost
  205  accounting.
  206         3. If the applicant is unable to meet water quality
  207  standards because existing ambient water quality does not meet
  208  standards, the governing board or the department must consider
  209  mitigation measures, such as compensating stormwater treatment,
  210  proposed by or acceptable to the applicant that cause net
  211  improvement of the water quality in the receiving body of water
  212  for those parameters which do not meet standards. Mitigation
  213  measures or enhancement credits intended to address water
  214  quality impacts regulated under ss. 373.403–373.443 may be
  215  generated by third parties and sold and transferred to
  216  environmental resource permit applicants only as authorized
  217  under s. 373.4134.
  218         4. Beginning July 1, 2026, if a public landowner authorizes
  219  or enters into an agreement with a private entity to construct,
  220  modify, or operate stormwater management systems or other
  221  features on public lands so that the private entity can provide
  222  offsite compensatory treatment for third-party water quality
  223  impacts or stormwater discharge, and if the department or a
  224  water management district employing the criteria in paragraph
  225  (a) determines by final agency action that the use of such
  226  public lands for such compensatory stormwater treatment is
  227  contrary to the public interest, the public landowner must
  228  direct the private entity to cease operation of the offsite
  229  compensatory treatment activities identified in the final order
  230  of the department or water management district. The requirement
  231  to cease such activities does not apply to other compensatory
  232  treatment activities governed by the agreement between the
  233  public landowner and the private entity which are not covered by
  234  the final order of the department or water management district.
  235  The public landowner may allow the private entity to resume such
  236  compensatory stormwater treatment activities on such public
  237  lands upon a subsequent final agency action determination by the
  238  department or final determination of a water management district
  239  that the use of such public lands for such compensatory
  240  treatment is no longer contrary to the public interest under the
  241  criteria of paragraph (a).
  242         5. If mitigation requirements imposed by a local government
  243  for surface water and wetland impacts of an activity regulated
  244  under this part cannot be reconciled with mitigation
  245  requirements approved under a permit for the same activity
  246  issued under this part, including application of the uniform
  247  wetland mitigation assessment method adopted pursuant to
  248  subsection (18), the mitigation requirements for surface water
  249  and wetland impacts are controlled by the permit issued under
  250  this part.
  251         Section 4. Paragraph (d) of subsection (1) of section
  252  373.036, Florida Statutes, is amended to read:
  253         373.036 Florida water plan; district water management
  254  plans.—
  255         (1) FLORIDA WATER PLAN.—In cooperation with the water
  256  management districts, regional water supply authorities, and
  257  others, the department shall develop the Florida water plan. The
  258  Florida water plan shall include, but not be limited to:
  259         (d) Goals, objectives, and guidance for the development and
  260  review of programs, rules, and plans relating to water
  261  resources, based on statutory policies and directives. The state
  262  water policy rule, renamed the water resource implementation
  263  rule pursuant to s. 373.019(27) s. 373.019(25), shall serve as
  264  this part of the plan. Amendments or additions to this part of
  265  the Florida water plan shall be adopted by the department as
  266  part of the water resource implementation rule. In accordance
  267  with s. 373.114, the department shall review rules of the water
  268  management districts for consistency with this rule. Amendments
  269  to the water resource implementation rule must be adopted by the
  270  secretary of the department and be submitted to the President of
  271  the Senate and the Speaker of the House of Representatives
  272  within 7 days after publication in the Florida Administrative
  273  Register. Amendments do shall not become effective until the
  274  conclusion of the next regular session of the Legislature
  275  following their adoption.
  276         Section 5. Paragraph (a) of subsection (5) of section
  277  373.250, Florida Statutes, is amended to read:
  278         373.250 Reuse of reclaimed water.—
  279         (5)(a) No later than October 1, 2012, the department shall
  280  initiate rulemaking to adopt revisions to the water resource
  281  implementation rule, as defined in s. 373.019(27) s.
  282  373.019(25), which shall include:
  283         1. Criteria for the use of a proposed impact offset derived
  284  from the use of reclaimed water when a water management district
  285  evaluates an application for a consumptive use permit. As used
  286  in this subparagraph, the term “impact offset” means the use of
  287  reclaimed water to reduce or eliminate a harmful impact that has
  288  occurred or would otherwise occur as a result of other surface
  289  water or groundwater withdrawals.
  290         2. Criteria for the use of substitution credits where a
  291  water management district has adopted rules establishing
  292  withdrawal limits from a specified water resource within a
  293  defined geographic area. As used in this subparagraph, the term
  294  “substitution credit” means the use of reclaimed water to
  295  replace all or a portion of an existing permitted use of
  296  resource-limited surface water or groundwater, allowing a
  297  different user or use to initiate a withdrawal or increase its
  298  withdrawal from the same resource-limited surface water or
  299  groundwater source provided that the withdrawal creates no net
  300  adverse impact on the limited water resource or creates a net
  301  positive impact if required by water management district rule as
  302  part of a strategy to protect or recover a water resource.
  303         Section 6. Subsection (1) of section 373.421, Florida
  304  Statutes, is amended to read:
  305         373.421 Delineation methods; formal determinations.—
  306         (1) The Environmental Regulation Commission shall adopt a
  307  unified statewide methodology for the delineation of the extent
  308  of wetlands as defined in s. 373.019(29) s. 373.019(27). This
  309  methodology shall consider regional differences in the types of
  310  soils and vegetation that may serve as indicators of the extent
  311  of wetlands. This methodology shall also include provisions for
  312  determining the extent of surface waters other than wetlands for
  313  the purposes of regulation under s. 373.414. This methodology
  314  does shall not become effective until ratified by the
  315  Legislature. Subsequent to legislative ratification, the wetland
  316  definition in s. 373.019(29) s. 373.019(27) and the adopted
  317  wetland methodology shall be binding on the department, the
  318  water management districts, local governments, and any other
  319  governmental entities. Upon ratification of such wetland
  320  methodology, the Legislature preempts the authority of any water
  321  management district, state or regional agency, or local
  322  government to define wetlands or develop a delineation
  323  methodology to implement the definition and determines that the
  324  exclusive definition and delineation methodology for wetlands
  325  shall be that established pursuant to s. 373.019(29) s.
  326  373.019(27) and this section. Upon such legislative
  327  ratification, any existing wetlands definition or wetland
  328  delineation methodology shall be superseded by the wetland
  329  definition and delineation methodology established pursuant to
  330  this chapter. Subsequent to legislative ratification, a
  331  delineation of the extent of a surface water or wetland by the
  332  department or a water management district, pursuant to a formal
  333  determination under subsection (2), or pursuant to a permit
  334  issued under this part in which the delineation was field
  335  verified by the permitting agency and specifically approved in
  336  the permit, shall be binding on all other governmental entities
  337  for the duration of the formal determination or permit. All
  338  existing rules and methodologies of the department, the water
  339  management districts, and local governments, regarding surface
  340  water or wetland definition and delineation shall remain in full
  341  force and effect until the common methodology rule becomes
  342  effective. However, this may shall not be construed to limit any
  343  power of the department, the water management districts, and
  344  local governments to amend or adopt a surface water or wetland
  345  definition or delineation methodology until the common
  346  methodology rule becomes effective.
  347         Section 7. Paragraphs (r) and (u) of subsection (1) of
  348  section 403.813, Florida Statutes, are amended to read:
  349         403.813 Permits issued at district centers; exceptions.—
  350         (1) A permit is not required under this chapter, chapter
  351  373, chapter 61-691, Laws of Florida, or chapter 25214 or
  352  chapter 25270, 1949, Laws of Florida, and a local government may
  353  not require a person claiming this exception to provide further
  354  department verification, for activities associated with the
  355  following types of projects; however, except as otherwise
  356  provided in this subsection, this subsection does not relieve an
  357  applicant from any requirement to obtain permission to use or
  358  occupy lands owned by the Board of Trustees of the Internal
  359  Improvement Trust Fund or a water management district in its
  360  governmental or proprietary capacity or from complying with
  361  applicable local pollution control programs authorized under
  362  this chapter or other requirements of county and municipal
  363  governments:
  364         (r) The removal of aquatic plants, the removal of tussocks,
  365  the associated replanting of indigenous aquatic plants, and the
  366  associated removal from lakes of organic detrital material when
  367  such planting or removal is performed and authorized by permit
  368  or exemption granted under s. 369.20 or s. 369.25, provided
  369  that:
  370         1. Organic detrital material that exists on the surface of
  371  natural mineral substrate shall be allowed to be removed to a
  372  depth of 3 feet or to the natural mineral substrate, whichever
  373  is less;
  374         2. All material removed pursuant to this paragraph shall be
  375  placed on a self-contained, upland spoil site which will prevent
  376  the escape of the spoil material into waters in the state except
  377  when spoil material is permitted to be used to create wildlife
  378  islands in freshwater bodies of the state when a governmental
  379  entity is permitted pursuant to s. 369.20 to create such islands
  380  as a part of a restoration or enhancement project;
  381         3. All activities are performed in a manner consistent with
  382  state water quality standards; and
  383         4. Activities under this exemption are not conducted in
  384  wetland areas, as defined in s. 373.019(29) s. 373.019(27),
  385  which are supported by a natural soil as shown in applicable
  386  United States Department of Agriculture county soil surveys,
  387  except when a governmental entity is permitted pursuant to s.
  388  369.20 to conduct such activities as a part of a restoration or
  389  enhancement project.
  390  
  391  The department may not adopt implementing rules for this
  392  paragraph, notwithstanding any other provision of law.
  393         (u) Notwithstanding any provision to the contrary in this
  394  subsection, a permit or other authorization under chapter 253,
  395  chapter 369, chapter 373, or this chapter is not required for an
  396  individual residential property owner for the removal of organic
  397  detrital material from freshwater rivers or lakes that have a
  398  natural sand or rocky substrate and that are not aquatic
  399  preserves or for the associated removal and replanting of
  400  aquatic vegetation for the purpose of environmental enhancement,
  401  providing that:
  402         1. No activities under this exemption are conducted in
  403  wetland areas, as defined in s. 373.019(29) s. 373.019(27),
  404  which are supported by a natural soil as shown in applicable
  405  United States Department of Agriculture county soil surveys.
  406         2. No filling or peat mining is allowed.
  407         3. No removal of native wetland trees, including, but not
  408  limited to, ash, bay, cypress, gum, maple, or tupelo, occurs.
  409         4. When removing organic detrital material, no portion of
  410  the underlying natural mineral substrate or rocky substrate is
  411  removed.
  412         5. Removed organic detrital material and plant material is
  413  placed on an upland spoil site which will not cause water
  414  quality violations.
  415         6. All activities are conducted in such a manner, and with
  416  appropriate turbidity controls, so as to prevent any water
  417  quality violations outside the immediate work area.
  418         7. Replanting with a variety of aquatic plants native to
  419  the state shall occur in a minimum of 25 percent of the
  420  preexisting vegetated areas where organic detrital material is
  421  removed, except for areas where the material is removed to bare
  422  rocky substrate; however, an area may be maintained clear of
  423  vegetation as an access corridor. The access corridor width may
  424  not exceed 50 percent of the property owner’s frontage or 50
  425  feet, whichever is less, and may be a sufficient length
  426  waterward to create a corridor to allow access for a boat or
  427  swimmer to reach open water. Replanting must be at a minimum
  428  density of 2 feet on center and be completed within 90 days
  429  after removal of existing aquatic vegetation, except that under
  430  dewatered conditions replanting must be completed within 90 days
  431  after reflooding. The area to be replanted must extend waterward
  432  from the ordinary high water line to a point where normal water
  433  depth would be 3 feet or the preexisting vegetation line,
  434  whichever is less. Individuals are required to make a reasonable
  435  effort to maintain planting density for a period of 6 months
  436  after replanting is complete, and the plants, including
  437  naturally recruited native aquatic plants, must be allowed to
  438  expand and fill in the revegetation area. Native aquatic plants
  439  to be used for revegetation must be salvaged from the
  440  enhancement project site or obtained from an aquatic plant
  441  nursery regulated by the Department of Agriculture and Consumer
  442  Services. Plants that are not native to the state may not be
  443  used for replanting.
  444         8. No activity occurs any farther than 100 feet waterward
  445  of the ordinary high water line, and all activities must be
  446  designed and conducted in a manner that will not unreasonably
  447  restrict or infringe upon the riparian rights of adjacent upland
  448  riparian owners.
  449         9. The person seeking this exemption notifies the
  450  applicable department district office in writing at least 30
  451  days before commencing work and allows the department to conduct
  452  a preconstruction site inspection. Notice must include an
  453  organic-detrital-material removal and disposal plan and, if
  454  applicable, a vegetation-removal and revegetation plan.
  455         10. The department is provided written certification of
  456  compliance with the terms and conditions of this paragraph
  457  within 30 days after completion of any activity occurring under
  458  this exemption.
  459         Section 8. Subsection (6) of section 556.102, Florida
  460  Statutes, is amended to read:
  461         556.102 Definitions.—As used in this act:
  462         (6) “Excavate” or “excavation” means any manmade cut,
  463  cavity, trench, or depression in the earth’s surface, formed by
  464  removal of earth, intended to change the grade or level of land,
  465  or intended to penetrate or disturb the surface of the earth,
  466  including land beneath the waters of the state, as defined in s.
  467  373.019(24) s. 373.019(22), and the term includes pipe bursting
  468  and directional drilling or boring from one point to another
  469  point beneath the surface of the earth, or other trenchless
  470  technologies.
  471         Section 9. For the purpose of incorporating the amendment
  472  made by this act to section 373.414, Florida Statutes, in a
  473  reference thereto, paragraph (d) of subsection (6) of section
  474  373.4136, Florida Statutes, is reenacted to read:
  475         373.4136 Establishment and operation of mitigation banks.—
  476         (6) MITIGATION SERVICE AREA.—The department or water
  477  management district shall establish a mitigation service area
  478  for each mitigation bank permit. The department or water
  479  management district shall notify and consider comments received
  480  on the proposed mitigation service area from each local
  481  government within the proposed mitigation service area. Except
  482  as provided in this section, mitigation credits may be withdrawn
  483  and used only to offset adverse impacts in the mitigation
  484  service area. The boundaries of the mitigation service area
  485  shall depend upon the geographic area where the mitigation bank
  486  could reasonably be expected to offset adverse impacts.
  487  Mitigation service areas may overlap, and mitigation service
  488  areas for two or more mitigation banks may be approved for a
  489  regional watershed.
  490         (d) If the provisions of s. 373.414(1)(b) and (8) are met
  491  and an insufficient number or type of credits from banks whose
  492  permitted service area overlays in whole or in part the regional
  493  watershed in which the impacts occur, the permit applicant is
  494  entitled to a one-time use of credits released from a mitigation
  495  bank outside the mitigation bank service area to offset impacts
  496  pursuant to s. 373.414(1)(b), as established by the procedure in
  497  paragraph (f). The department or water management district must
  498  have determined that the mitigation service area lacked the
  499  appropriate credit type. Priority must be given to mitigation
  500  banks whose permitted service area fully includes the impacted
  501  site. If the number of released credits within a mitigation
  502  service area only partially offsets the impacts associated with
  503  a proposed project in the mitigation service area, the permit
  504  applicant may only use out-of-service-area credits to account
  505  for the difference between the released credits available in the
  506  mitigation bank service area and the credits required to offset
  507  the impacts associated with the proposed project. In
  508  implementing this subsection, the department and water
  509  management districts shall apply a proximity factor to determine
  510  adequate compensatory mitigation as follows:
  511         1. A 1.0 multiplier shall be applied for use of in-kind
  512  credits within the service area.
  513         2. A 1.0 multiplier shall be applied for use of in-kind and
  514  out-of-service-area credits when the service area overlays part
  515  of the same regional watershed as the proposed impacts only
  516  after credit deficiency has been established by the procedure
  517  set forth in paragraph (f).
  518         3. A 1.2 multiplier shall be applied for use of in-kind and
  519  out-of-service-area credits located within a regional watershed
  520  immediately adjacent to the regional watershed overlain by a
  521  bank service area in which proposed impacts are located only
  522  after credit deficiency has been established by the procedure
  523  set forth in paragraph (f).
  524         4. When in-kind credits are not available to offset impacts
  525  in the regional watershed immediately adjacent to the regional
  526  watershed overlain by a mitigation bank service area in which
  527  the proposed impacts are located, an additional 0.25 multiplier
  528  shall be applied for each additional regional watershed boundary
  529  crossed only after credit deficiency has been established by the
  530  procedure set forth in paragraph (f).
  531         5. An additional 0.50 multiplier shall be applied after any
  532  multipliers required in subparagraphs 1.-4., if the mitigation
  533  used to offset impacts entails out-of-kind replacement.
  534         Section 10. This act shall take effect July 1, 2026.