Watch Now
 
Watch NAHB Meeting of the Members and Leadership Council Meeting in Orlando. Must be logged in to view. View now
 

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

IBS

Feb 18, 2026

NAHB Expects Remodeling Growth in 2026 and Beyond

The remodeling market is poised for growth in the coming years as many structural tailwinds, including an aging housing stock, the persistent lock-in effect and the trend for older home owners to age-in-place, will not be changing quickly, according to industry experts at a panel hosted by the National Association of Home Builders (NAHB) during the International Builders’ Show in Orlando.

Awards | Safety | IBS

Feb 17, 2026

NAHB Recognizes Leaders in Residential Construction Safety

Today the National Association of Home Builders (NAHB) named the recipients of the 20th annual NAHB/Builders Mutual Safety Award for Excellence (SAFE) for their commitment to exemplary safety and health programs in the residential construction industry. The 2025 SAFE Awards winners were honored at a ceremony held during the 2026 NAHB International Builders’’Show.

View all

Latest Economic News

Economics

Feb 17, 2026

Builder Sentiment Edges Lower on Affordability Concerns

Builder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Economics

Feb 17, 2026

How Rising Costs Affect Home Affordability

Housing affordability remains a critical issue, with 65% of U.S. households unable to afford a median-priced new home in 2026. When mortgage rates are elevated, even a small increase in home prices can have a big impact on housing affordability.

Economics

Feb 16, 2026

Cost of Credit for Builders & Developers at Its Lowest Since 2022

The cost of credit for residential construction and development declined in the fourth quarter of 2025, according to NAHB’s quarterly survey on Land Acquisition, Development & Construction (AD&C) Financing.