Help Shape What’s Next for NAHB
 
Take the Industry Pulse Check. Learn more
 

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

Sustainability and Green Building

May 12, 2026

3 Reasons to Build to the National Green Building Standard

The new edition of the National Green Building Standard focuses on building for the future by addressing these real-world challenges through sustainable building practices. Here are three benefits to building your next residential project to the NGBS.

Economics

May 11, 2026

U.S. Economy Adds 115,000 Jobs in April

The U.S. labor market continued to show resilience in April, with job growth persisting despite elevated interest rates and rising geopolitical uncertainty related to the Iran conflict. The unemployment rate held steady at 4.3%.

View all

Latest Economic News

Economics

May 12, 2026

Inflation Outpaced Wage Growth in April

Inflation accelerated to a nearly three-year high in April, driven by continued increases in energy costs from the Iran war. Energy costs drove more than 40% of the monthly increase, with national gasoline prices soaring above $4.50 in early May for the first time since July 2022.

Economics

May 12, 2026

Consumer Credit Accelerated in Q1 2026

In the first quarter of 2026, consumer credit grew at a slightly faster pace than in years prior amid positive yet sluggish economic growth and rising inflation pressure. According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.14 trillion in the first quarter of 2026.

Economics

May 11, 2026

Existing Home Sales Edged Up Slightly in April

Existing home sales edged up in April after reaching a nine-month low in March, but sales remained at historically low levels. Elevated mortgage rates and reignited inflation driven by the Iran war continued to weigh on affordability as economic uncertainty pushed up long-term rates, while rising energy costs strained household budgets.