Section F - Information for Mitigation Bank Permits

Mitigation banking is a practice in which an environmental enhancement and preservation project is conducted by a public agency or private entity (“banker”) to provide mitigation for unavoidable wetland impacts within a defined region (mitigation service area). The bank is the site itself, and the currency sold by the banker to the impact permittee is a credit, which represents the wetland ecological value equivalent to the complete restoration of one acre a unit of area measurement for land. Equal to 43,560 square feet.. The number of potential credits permitted for the bank and the credit debits required for impact permits are determined by the permitting agencies. UMAM Uniform Mitigation Assessment Method is the method of assessment for banks established after February 2, 2004.

Chapter 373.4135  Florida Statutes states: “Mitigation banks and offsite regional mitigation should emphasize the restoration and enhancement of degraded ecosystems and the preservation of uplands and wetlands those areas that are inundated or saturated by surface water or ground water at a frequency and a duration sufficient to support, and under normal circumstances to support, a prevalence of vegetation typically adapted for life in saturated soils. Soils present in wetlands generally are classified as hydric or alluvial, or possess characteristics that are associated with reducing soil conditions. The prevalent vegetation in wetlands generally consists of facultative or obligate hydrophytic macrophytes that are typically adapted to areas having soil conditions described above. These species, due to morphological, physiological, or reproductive adaptations, have the ability to grow, reproduce or persist in aquatic environments or anaerobic soil conditions. Florida wetlands generally include swamps, marshes, bayheads, bogs, cypress domes and strands, sloughs, wet prairies, riverine swamps and marshes, hydric seepage slopes, tidal marshes, mangrove swamps and other similar areas. Florida wetlands generally do not include longleaf or slash pine flatwoods with an understory dominated by saw palmetto. as intact ecosystems rather than alteration expanding or changing a system (which includes any type of work, activity, or structure), other than that required to maintain the system, including any changes which may increase or reduce the flow, storage, or discharge of surface water, increase pollutant loading, change the point or points of discharge, or extend into or adversely affect wetlands by ditching, draining, filling or excavation. of landscapes to create wetlands. This is best accomplished through restoration of ecological communities that were historically present.”

The permitting process for a mitigation bank involves several different state and federal review agencies which make up the Interagency Review Team (IRT). Implementation of a mitigation bank requires a long-term interactive relationship with several regulatory agencies.  It is also wise to conduct a market analysis and conduct due diligence over the years regarding such variables as rule changes, competition, development trends, local planning, etc.

Are you interested in starting a mitigation bank?

Mitigation banking can be very rewarding, and the Department encourages the establishment of mitigation banks.  However, there are some important things you should know before deciding if mitigation banking is right for you.

1. Mitigation banking has high up-front costs in time and financial investment.
• Before any credits are available for sale, the mitigation bank sponsor must acquire the property, permit the bank with both state and federal agencies (typically requires an experienced environmental consultant and/or firm and 1-3 years), record a perpetual conservation easement An easement prepared and recorded in the public records to protect, preserve and conserve natural resources from being impacted by future development. Often used as mitigation for permitted impacts. on the property, provide financial assurance (letters of credit or performance bonds) for both the cost of implementing the project and for an endowment for its long-term management.
• As a result of the above, as well as ecological considerations, mitigation banks in Florida tend to be large parcels, typically over 1000 acres. (the smallest ones permitted are approximately 150-350 acres)
• Costs include: professional environmental and legal services, permitting costs, cost of any grading or earthwork any work that moves earth, such as dredging, grading, filling and excavating., cost of plant material and planting, property taxes, marketing, maintenance, prescribed burning costs, exotic species eradication, etc.

2. Mitigation banking is a long-term commitment and must be conducted under the supervision of an experienced environmental professional.
• Many people find the work of mitigation banking pleasurable.  After all, it's great for the environment and you can watch the ecological improvements unfold.  If the prospective banker is not an experienced environmental professional, one (or more) will need to be hired to facilitate permitting and to manage the mitigation bank activities after the permit is received.
• Creation, preservation, restoration or enhancement of wetlands requires on-going management, both ecologically and in terms of regulatory coordination (generally more than 10 years plus maintenance management after that).  The bank must be managed and kept in a successful ecological state in perpetuity ongoing, forever, even after the last credit has been sold.

3. Mitigation banking has a risky return.
• Credit prices are not regulated, and thus are influenced by a wide variety of variables: rate of growth, competition (multiple banks may be permitted in one area), regulatory climate (rules and implementation can vary over time).
• Credit availability is based on measured success criteria that may never be met or are met at a slower rate than predicted.  Success may be at risk from unforeseen factors such as stochastic events (hurricanes, drought, new exotic pest species, catastrophic fires...), changes in regional water use or regulation or vandalism.
• Profitability (rate and time) is highly variable among existing permitted banks.

If you're still interested - great!  See the Department's Wetlands Mitigation Section website for contact information and more information on mitigation banking.  Contact the Department to find out how to start the Interagency Review Team (IRT) process.  

Do not submit an application until you have contacted the Department for more information.