What Is a Mitigation Bank and When Is It Used?
Florida’s development rules require a plan for any environmental impact. Mitigation banks help meet those requirements—if you know when to use them.
Before starting construction in Florida, developers must evaluate their project's impact on wetlands and other natural resources. If unavoidable impacts are expected, environmental agencies like the Florida Department of Environmental Protection (FDEP) or the U.S. Army Corps of Engineers (USACE) require mitigation. That’s where mitigation banks come into play.
In this post, RSP Engineers explains how mitigation banks work, when they’re applicable, and what developers need to know for successful environmental permitting in Florida.
What Is a Mitigation Bank?
A mitigation bank is a large, pre-approved natural area that has been restored, enhanced, or preserved to compensate for future development impacts elsewhere. Instead of performing mitigation on-site, developers can purchase credits from a mitigation bank.
This system allows environmental functions to be restored at scale and offers developers a streamlined permitting path—when applicable.
When Can Developers Use a Mitigation Bank?
Mitigation banks can be used when:
The proposed development unavoidably impacts jurisdictional wetlands.
The project is within the mitigation service area of an approved bank.
Agencies determine that off-site mitigation is preferable or acceptable.
The type of impacted habitat matches what the bank restores or protects.
If a suitable mitigation bank is available, developers may purchase credits instead of conducting their own on-site restoration.
Benefits of Using Mitigation Banks
Using a mitigation bank can:
Speed up permitting by avoiding the need for custom mitigation plans.
Ensure long-term success of wetland restoration through expert-managed sites.
Provide cost certainty in budgeting for environmental compliance.
Reduce project delays tied to on-site mitigation approvals and monitoring.
What Agencies Approve Mitigation Banks?
Both state and federal agencies must approve mitigation banks in Florida. These include:
FDEP
South Florida Water Management District (SFWMD) or other applicable WMDs
USACE (for federal permits under the Clean Water Act)
Each bank has its own ledger of available credits and defined service areas.
When Is a Mitigation Bank an Option?
| Project Condition | Use of Mitigation Bank |
|---|---|
| Wetland impacts are unavoidable | Mitigation bank credits may be used |
| Site is within a bank’s service area | Eligible to purchase credits from that bank |
| No matching habitat type in available banks | On-site or permittee-responsible mitigation required |
| Large-scale linear infrastructure project | Often suited to mitigation banks for efficiency |
| Project located in an urban or highly constrained site | Off-site mitigation via bank may be preferred |
Related Requirements and Considerations
Functional Assessment Tools: Agencies may use tools like UMAM (Uniform Mitigation Assessment Method) to determine the number of credits needed.
Timing: Credits must typically be secured before permits are issued.
Cost Variability: Credit prices vary depending on region and habitat type.
For more on wetland permitting and environmental resource compliance, see our related posts:
Conclusion
Mitigation banks can save time and money on permitting—but only if the project meets certain conditions. Developers should work with experienced civil and environmental consultants to evaluate options early in the due diligence phase.
FAQs
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On-site mitigation involves restoring or enhancing habitat on or near the project site. Mitigation banks are off-site areas that have already been improved to meet regulatory standards. More on this from the U.S. EPA.
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That depends on the size and ecological value of the impacted area. Agencies use scoring systems like UMAM to calculate this.
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No. Availability depends on supply, habitat type, and whether your project is within a bank’s approved service area.
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Yes, but the bank must also be approved by the U.S. Army Corps of Engineers.
Looking for Civil + Environmental Due Diligence Support?
RSP Engineers delivers civil engineering and environmental services across Florida. Contact us for comprehensive land development support—from soil reports to stormwater permitting.
