Court Sends WOTUS Rule Back to the EPA

Environment
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Codes and Standards | Land Development | Housing Affordability | Multifamily

Mar 31, 2026

NAHB Forming Working Group on Building Codes for Missing Middle Housing

NAHB is forming a joint working group to foster development of NAHB’s long-term vision for “missing middle” housing and establish positions in the short term on building codes and other issues related to these housing types.

Member Benefits

Mar 31, 2026

NAHB’s Newest Savings Program Helps Members Build Financial Strength

From navigating cash flow to planning for long-term growth, having the right financial tools in place can make a meaningful difference. To help support members in these efforts, NAHB is excited to announce its latest member savings program partner: Signature Federal Credit Union.

View all

Latest Economic News

Economics

Mar 31, 2026

Soft Construction Labor Market Shows Decline for Open Positions

The number of open positions in construction in February was down year-over-year, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).

Economics

Mar 30, 2026

NAHB HBGI: Micro Markets Lone Bright Spot for Single-Family Building in Fourth Quarter

Single-family construction declined further in the fourth quarter in all but sparsely populated micro counties, according to the NAHB Home Building Geography Index (HBGI).

Economics

Mar 26, 2026

State/Local Property Tax Revenue Rises Past $210 Billion in the Fourth Quarter

Property tax revenue collected by state and local governments rose for the ninth consecutive quarter according to the Census Bureau’s quarterly summary of state and local tax revenue.