Education: Understanding Cumulative Impact Analysis and the Role of Mitigation Bank Service Areas

Lucky L Mitigation Bank

Posted on April 9, 2025

Navigating the world of real estate development often means encountering terms that seem complex yet hold significant value, such as Mitigation Plan, Mitigation Bank Service Area (MSA), and Cumulative Impact Analysis (CIA). But what exactly do these terms mean, and why should they matter to you as a real estate developer or professional? Let's first define these terms and explain their importance during the real estate development planning process.

The Mitigation Plan

A mitigation plan often includes several different reviewing agencies with varying rules that may seem complicated at times. The goal is the same with every agency: to achieve ecological gain. This results in a combination of mitigation requirements, ranging from wetland mitigation to water quality enhancement to endangered species mitigation. Mitigation plans vary depending on the project size, function, and quality. Larger projects will often utilize a combination of several forms of mitigation, such as onsite mitigation, wetland mitigation credits, and Permittee Responsible Mitigation (PRM) when wetland credits are not available. Road projects, smaller commercial projects, or single-family lots often utilize wetland mitigation credits with limited land available onsite for ecological restoration.

Mitigation Bank Service Area (MSA)

A Mitigation Service Area is an approved geographical region where a mitigation bank can provide wetland mitigation credits for projects with unavoidable wetland impacts. The service area is generally based on the watershed in which the mitigation bank is located. In some areas of the state, watersheds are further divided into drainage basins. Therefore, a mitigation bank’s approved service area may include multiple drainage basins. In these circumstances, wetland impacts mitigated outside of the drainage basin of the impact site will trigger the need for a project-specific Cumulative Impact Analysis.

Project-Specific Cumulative Impact Analysis (CIA)

A project-specific Cumulative Impact Analysis plays a pivotal role in understanding the overall effects on the drainage basin, ensuring that mitigation credits utilized outside of the drainage basin do not surpass critical ecological thresholds. This policy ensures that we do not inadvertently cross ecological boundaries that could harm the drainage basin’s overall ecosystem. From a developer's perspective, utilizing a mitigation bank outside the drainage basin may seem like an unnecessary step in the arduous process. However, this decision could be a financial mistake, potentially costing the developer thousands more for mitigation credits without exploring the option of using a cumulative impact analysis.

Do you need a Project-Specific Cumulative Impact Analysis? Schedule a booking today to review your project's requirements with Revive Ecosystems, LLC.

In rare circumstances, a mitigation bank’s borders may encompass two watersheds and/or basins. In those cases, the bank is approved to provide mitigation credits in both basins without triggering a concern for a cumulative impact. Lucky L Mitigation Bank, located in Osceola County, Florida, is an example of one of the rare cases with the bank located in both the Lake Kissimmee and Southern St. Johns River Basins (Basin 20). The bank is considered in-basin for impacts within these regions while still being able to provide credits in other drainage basins such as Lake Tohopekaliga, Lake Hart, Lake Gentry, Lake Hatchineha, North Kissimmee, and Middle Kissimmee Basins with a successful project-specific cumulative impact analysis. The bank maintains two mitigation bank ledgers: one for St. Johns Water Management impacts and the other for South Florida Water Management District impacts.

 The Mitigation Bank Search

Florida has approximately 70 approved mitigation banks with varying service areas and wetland credit types. The industry appears to be growing exponentially as more banks in the planning stages continue to emerge. However, despite these promising statistics, real estate developers should evaluate the mitigation credit availability early in the planning stages, ensuring all options are on the table. Mitigation credit inventory is never guaranteed for a project. Credit inventory by region can vary, with some having three mitigation banks, while other regions may only have one. The mitigation bank may not have the specific type of credit required by the project or may not have any available inventory at all. Additionally, rules require that mitigation is type-for-type at a minimum, meaning freshwater impacts require freshwater mitigation, and saltwater impacts require saltwater mitigation, limiting mitigation credit options. The Florida Department of Environmental Protection keeps a database of approved wetland mitigation banks in Florida, while the United States Army Corps does the same through its RIBITS system. It is important to understand that inventory reflected on these websites is often not up-to-date and does not reflect credit reservations by other developers awaiting permit approval. Availability and pricing should be obtained from the mitigation bank or by contacting a Mitigation Acquisition Specialist. The Mitigation Acquisition Specialist is an essential member of the development team to tackle these challenges and coordinate the most cost-effective solutions on behalf of the developer. They are current with the evolving wetland regulations, strategies, solutions, and current availability, ranging from state-only to federally approved mitigation, conservation, and water quality banks and sites. The specialist will focus on umbrella-minded strategies to provide flexibility and reduce the overall risk and cost while ensuring ecological impacts are compensated for to local, state, and federal standards. Click here to contact a Mitigation Acquisition Specialist. 

Lucky L Mitigation Bank Service Area

Click here to reserve credits from Lucky L Mitigation Bank.