EPA Repeals Obama-Era WOTUS Rule

Environment
Published

In a positive development to resolve years of uncertainty over where federal jurisdiction begins and ends, the Environmental Protection Agency today rescinded the Obama-era “waters of the U.S.” (WOTUS) rule.

“NAHB commends the EPA and U.S. Army Corps of Engineers for repealing the 2015 WOTUS rule that vastly expanded federal overreach over water and land use by regulating man-made ditches and isolated ponds on private property,” said NAHB Chairman Greg Ugalde.

“By repealing the 2015 rule, the EPA and Corps have finally provided consistency among all 50 states, which will make the federal permitting process more predictable and affordable," he added. "Now, the agencies need to finalize a new definition that restores common sense to the regulatory process by respecting states' rights and balancing economic and environmental concerns.”

The 2015 WOTUS rule has been subject to several legal challenges that halted its implementation nationwide. Last month, the U.S. District Court for Georgia issued a decision finding that the substance of the rule violates the Clean Water Act. The court remanded the rule back to the agencies to fix it.

Prior to EPA's repeal announcement, the Obama-era rule was in effect in 22 states and the District of Columbia, and the previous regulations issued in 1986 were in effect in the remaining 28 states. The EPA decision means the 1986 rule will now be in effect in nationwide until a final replacement rule is issued.

The Trump administration has proposed a new WOTUS rule that NAHB generally supports. The proposed rule would clarify the extent of federal oversight and correct the vast overreach of prior rules.

Once finalized, builders and developers will be better able to determine for themselves whether they will need federal permits for construction activities. And, because the proposed rule narrows the extent of federal jurisdiction by excluding isolated water bodies, "ephemeral" waters that only form in response to rain, and most ditches, builders should require fewer Clean Water Act permits for isolated or temporary wetlands or water bodies.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Advocacy

Aug 08, 2025

Lumber Talking Points Featured in NAHB’s Monthly Update

The update provides the latest messaging framework to help members articulate housing priorities and latest news related to Canadian lumber duties.

Housing Finance

Aug 07, 2025

Podcast: Federal Home Loan Bank Leader Shares Insights into Current Mortgage Market

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by Council of Federal Home Loan Banks CEO Ryan Donovan to spotlight how the home loan bank system can support housing development, especially affordable housing, and what the system is doing for the economy.

View all

Latest Economic News

Economics

Aug 08, 2025

Weaker Demand for Residential Mortgages in Second Quarter

In the second quarter of 2025, overall demand for residential mortgages was weaker, while lending standards for most types of residential mortgages were essentially unchanged, according to the recent release of the Senior Loan Officer Opinion Survey (SLOOS).

Economics

Aug 07, 2025

Multifamily Developer Confidence Increases in Second Quarter

The Multifamily Production Index (MPI) was up two points year-over-year to 46. The Multifamily Occupancy Index (MOI) had a reading of 82, up one point year-over-year.

Economics

Aug 06, 2025

Mortgage Applications Tick Up in July as Rates Ease Slightly

Mortgage application activity picked up in July as interest rates eased modestly. The Mortgage Bankers Association’s (MBA) Market Composite Index, which tracks mortgage application volume, rose 2.4% from June on a seasonally adjusted basis. Compared to July 2024, total applications were up 24.5%.