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
Jun 18, 2026
Fed Drops Easing Bias, Clouding Near-Term Outlook for Housing MarketDespite a change in leadership, the Federal Reserve decided not to change interest rates at the June Federal Open Market Committee (FOMC) meeting Wednesday. It was the fourth consecutive meeting in which the short-term federal funds rate stayed the same at a top rate of 3.75%.
Jun 17, 2026
Apply Now To Become the Next National Associate ChairA National Associate Chair's role is is to bring Associate initiatives, questions and concerns to the other Builder NACs and the senior officers of NAHB for collaboration.
Latest Economic News
Jun 18, 2026
Gains for Household Real Estate AssetsThe market value of households’ real estate assets rose to a new high in the first quarter reaching $48.7 trillion, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. This level is 1.7% higher than in the fourth quarter and is 2.6% higher than a year ago.
Jun 17, 2026
A Laconic Statement: Hawkish Hold and New Plans from the FedWith a new Fed Chair and plans for evolving operating strategies, the Federal Reserve maintained its target policy rate at the conclusion of the June Federal Open Market Committee (FOMC) meeting. For the fourth consecutive meeting, the FOMC maintained the short-term federal funds rate at a top rate of 3.75%.
Jun 16, 2026
Housing Starts Weaken in May as Multifamily Construction SlowsHousing starts fell sharply in May, driven by a steep drop in multifamily construction. Meanwhile, single-family buildings also slipped amid high interest rates, rising construction costs and ongoing labor shortages.