2027 IBS Registration Open
 
Register by Sept. 30 to lock in the best deals: Register 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
Sep 01, 2026
Registration Now Open for NAHB International Builders’ Show in Las Vegas

The National Association of Home Builders (NAHB) officially opened online registration and housing today for the 2027 NAHB International Builders’ Show® (IBS), the largest annual light construction trade show in the world.

Economics
Sep 01, 2026
Large Metro Core Counties Drive Drop in Single-Family Market Share

Single-family construction remained soft across most geographic areas in the second quarter of 2026, as rising building material costs, elevated interest rates and economic uncertainty continued to weigh on the industry. By contrast, multifamily construction strengthened in most regions, supported by solid rental housing demand, according to the latest findings from the NAHB Home Building Geography Index (HBGI).

View all

Latest Economic News

Economics
Aug 31, 2026
Serious Delinquencies Edge Lower While Mortgage Transitions Rise

Household debt delinquency rates showed signs of stabilization in the second quarter of 2026 as overall share of delinquency balances edged lower and the transition to seriously delinquent debt declined for the second consecutive quarter.

Economics
Aug 31, 2026
Single-Family AD&C Lending Falls Back in Q2

Single-family construction lending fell slightly in the second quarter, according to data released by the Federal Deposit Insurance Corporation.

Economics
Aug 28, 2026
Multifamily Absorption Rate Remains Below 50%

The percentage of new apartment units that were absorbed within three months after completion was down five percentage points in the first quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).