Environmental Crediting Strategies: Key Changes Effective July 2026

Published: May 19, 2026

Florida Senate Bill 492 (SB 492) significantly expanded the use of wetland mitigation bank credits, allowing developers to purchase credits, assuming they are available, from the Mitigation Service Area (MSA), located outside of a project’s immediate watershed.

With key changes beginning July 1, 2026, the law is being referenced as reflecting Florida’s focus on balancing environmental protection while providing additional structure around permitting guidance for regulated projects.

Impact on Projects

Mitigation credits are often essential for obtaining environmental permits for infrastructure, residential, commercial, and mixed-use developments that affect wetlands or other regulated natural resources.

The intent of the legislation is to create greater predictability and accountability in the mitigation banking system. However, it has the potential to also affect project timelines, mitigation costs, and permitting strategies.

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Key Changes Start July 2026

Starting July 1, 2026, mitigation banks must submit annual credit availability reports to the FDEP/Water Management Districts to improve tracking. Key provisions of the legislation include:

– Revising the schedule for the release of mitigation credits after issuance of a mitigation bank permit

– Allowing mitigation bank applicants to propose alternative credit release schedules

– Restricting the release of credits tied to freshwater wetland creation until certain ecological performance standards are met

– Requiring the FDEP and water management districts to apply proximity factor multipliers consistently

– Limiting how long permit applicants rely on credit availability determinations during the permitting process