Florida’s New Wetland Mitigation Banking Law: What Developers and Engineers Need to Know

Florida’s land development rules just changed. On July 1, 2025, House Bill 1175 / Senate Bill 492 went into effect—reshaping the landscape of wetland mitigation banking and permitting statewide.

This legislation introduces more flexibility in how mitigation credits can be used, especially across water management district lines. But with greater flexibility comes new scrutiny and procedures. For engineers, environmental consultants, and developers, it’s critical to understand what’s changed—and how to navigate it without delays.

Here’s what RSP Engineers wants you to know about Florida’s new mitigation law and how it may impact your next site development project.

What Is Wetland Mitigation?

Wetland mitigation is a regulatory process used to offset the environmental impact of developing on or near wetlands. Under Section 404 of the Clean Water Act and Florida’s Environmental Resource Permitting (ERP) program, developers must compensate for any permitted wetland impact by restoring, creating, or preserving other wetlands.

In Florida, this is typically done by purchasing credits from mitigation banks—privately or publicly managed wetland preserves that sell these credits under strict state and federal oversight.

What Changed in Florida’s Mitigation Banking Law?

The new law—HB 1175 / SB 492—was passed during the 2024 legislative session and took effect on July 1, 2025. It introduces several important updates:

Table: Key Changes Under HB 1175 / SB 492

Old Rule	New Rule (Effective July 1, 2025)
Mitigation credits had to be used within the same Water Management District (WMD) or basin.	Mitigation credits can now be used across WMD boundaries, under certain conditions.
Limited state review of mitigation credit sufficiency.	State agencies must now evaluate the “ecological appropriateness” of cross-boundary credit usage.
ERP permits rarely accepted out-of-district mitigation.	Statewide guidance now allows more consistent credit approval and streamlined review.
Limited legal framework for credit trading or transfers.	New statutory authority now permits more flexibility in credit markets.

This law is expected to increase access to credits in areas with limited mitigation options—but also requires a more rigorous demonstration that the selected credits provide equal or greater ecological benefit.

What This Means for Developers and Civil Engineers

Whether you're developing a commercial site, subdivision, or infrastructure project in Florida, here's how this change may affect your permitting process:

• More credit options: You may now purchase credits from a bank outside your water management district if local options are limited.

• More documentation required: You must justify that the out-of-district bank provides appropriate ecological value. This includes:

  • Watershed analysis

  • Similarity of ecological region or habitat

  • Cumulative impact considerations

• Increased coordination: Your engineering team will need to work closely with environmental consultants and mitigation bankers to structure your permit package.

• Potential time savings: Projects in high-growth areas with limited local credit supply (e.g., parts of Miami-Dade or Tampa) may avoid delays by tapping into external banks.

To see if your site includes or impacts jurisdictional wetlands, visit the FDEP Environmental Resource Permitting Portal.

How Civil Engineers Help With Wetland Permitting

Civil engineers play a central role in managing the permitting and mitigation process:

• Preparing site plans and grading that minimize wetland impacts

• Working with environmental consultants to delineate wetland boundaries

• Coordinating with mitigation banks and water management districts

• Submitting permit packages to the Florida Department of Environmental Protection (FDEP) or relevant WMD

• Helping developers track timelines and avoid rejected submittals

At RSP Engineers, we’re already working with clients to update their permitting strategies under this new framework.

FAQs

• Can mitigation credits now be used across water management district boundaries?

  Yes. Under HB 1175 / SB 492 (effective July 1, 2025), developable projects can use credits from banks outside their Water Management District only if local credits are unavailable and the ecological value aligns with your impacted site.

• Who oversees approval of out‑of‑district mitigation credits?

  The Florida Department of Environmental Protection (FDEP) or your regional Water Management District (e.g., SFWMD) reviews whether credit use is appropriate. They must evaluate watershed fit and apply proximity multipliers.

• What is the new credit release schedule?

  A standardized schedule now governs credit availability:

  • 30% at conservation easement

  • 30% after initial construction

  • 20% at interim performance

  • 20% at final success

• Does this law impact U.S. Army Corps of Engineers (USACE) approvals?

  No. HB 1175/SB 492 applies only to state-level permitting. Mitigation for federal wetlands still requires compliance under Section 404 and USACE rules.

• How often must mitigation banks report their credits?

  Starting July 1, 2026, mitigation banks must submit an annual accounting of available credits to FDEP or their WMD. Those agencies will compile a statewide report each October.

Stay Ahead of Florida’s Evolving Rules

Environmental permitting in Florida is complex—and it’s changing fast. Whether your site is near wetlands, in a floodplain, or within protected lands, you need a civil engineering team that understands state policy and local agency expectations.

At RSP Engineers, we stay on top of legislative updates so our clients stay in compliance without surprise delays. If you're planning development in 2025 and need support with mitigation, contact us today.