Court Sends WOTUS Rule Back to the EPA
In a victory for NAHB and the housing industry, the U.S. District Court for the Southern District of Texas declared that the Environmental Protection Agency (EPA) violated the Administrative Procedure Act when drafting the Obama-era ‘waters of the United States’ (WOTUS) rule in 2015.
In 2015, NAHB and the Texas Association of Builders, among others, filed a lawsuit in the Southern District of Texas challenging the definition of the 2015 WOTUS rule. The court has issued a partial decision on NAHB’s summary judgement motion by remanding the 2015 WOTUS rule back to the EPA. However, the court did not vacate the rule.
The court’s ruling addressed NAHB’s procedural challenges to the rule. The court found that when proposing the rule, the EPA and U.S. Army Corps of Engineers defined “adjacent waters” based on hydrology and ecology. But when issuing the final 2015 WOTUS rule, the agencies defined “adjacent waters” based on precise numerical distances.
This change did not provide the public with sufficient notice to comment on distances, and therefore, the court stated that the final rule was not a “logical outgrowth” of the proposal.
The second reason the court found fault with the rule is that the agencies relied (heavily) on the “Final Connectivity Report,” yet closed the notice and comment period before that report was final. Therefore, the court said the agencies did not give commenters the opportunity to refute the “most critical factual material used to support the Final Rule,” and failed to provide a meaningful opportunity to comment.
While the court remanded the 2015 WOTUS rule back to the EPA, it kept in place the injunction to keep the rule from taking effect in Texas, Mississippi and Louisiana. This is the first summary judgement decision from any court concerning the 2015 WOTUS rule and is important because it will provide momentum for the EPA to ultimately repeal it.
For more information, contact Tom Ward at 800-368-5242 x8230.
Latest from NAHBNow
Oct 16, 2025
NAHB Endorses Dignity Act to Modernize America’s Immigration SystemNAHB supports comprehensive immigration reform legislation recently introduced in the House by Reps. Maria Salazar (R-Fla.) and Veronica Escobar (D-Texas) that would protect the nation’s borders and preserve critical workforces.
Oct 16, 2025
Amid Market Challenges, Builder Expectations Rise in OctoberBuilder confidence in the market for newly built single-family homes was 37 in October, up five points from September and the highest reading since April, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.
Latest Economic News
Oct 14, 2025
Custom Home Building Share Declines in 2024In 2024, 17.5% of all new single-family homes started were custom homes. This share decreased from 18.8% in 2023 and from 20.4% in 2022, according to data tabulated from the Census Bureau’s Survey of Construction (SOC).
Oct 13, 2025
Hispanics Comprise Nearly One-Third of the Construction Labor ForceDiversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to the 2023 American Community Survey, non-Hispanic White workers still account for the majority of the construction industry at 57%. Hispanic workers now represent nearly one-third of the labor force at 32%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8%.
Oct 10, 2025
Vinyl Surpasses Stucco as Most Used Principal Exterior Wall MaterialIn 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.