NAHB Actively Engaged in WOTUS Rulemaking, Calls for More Transparency

Advocacy
Published
Contact: Michael Mittelholzer
[email protected]
AVP, Environmental Policy
(202) 266-8660

The Biden administration’s process for withdrawing the Trump administration’s “waters of the U.S.” (WOTUS) definition under the Clean Water Act (CWA) and replace it with another WOTUS definition has broad ramifications affecting land developers, home builders and countless other small businesses.

In response, NAHB’s Senior Officers Jerry Konter, Alicia Huey, Carl Harris and Greg Ugalde are participating in a series of virtual hearings hosted by the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Corps) to voice concerns on specific aspects of the proposed WOTUS rule that, if adopted, could significantly increase the scope of CWA’s jurisdiction, in addition to creating increased regulatory confusion and subsequent CWA permitted delays compared to the Trump administration’s rule.

And while NAHB remains actively engaged throughout this process, we continue to express strong concerns to regulators, Congress and the Administration over the legality, transparency, and fairness of this rulemaking process.

Most notably, EPA and the Corps claimed under the Regulatory Flexibility Act the proposed rule will not have a significant economic impact upon small businesses.

Under the Regulatory Flexibility Act, EPA and the Corps are required to consider the impact on small businesses concerning their proposed changes to the definition of WOTUS and provide recommendations on regulatory alternatives to minimize the burden to businesses, organizations and governmental jurisdictions subject to the regulation.

In addition, last week the Corps abruptly released a statement on its website stating the agencies would no longer issue to developers and builders requested federal wetlands permits based upon final approved jurisdictional determinations (AJDs) made by the Corps under the current WOTUS rule. This is a significant reversal of the Corps’ policy concerning AJDs, which states those determinations were valid for five years.

In communities across the nation, small businesses are driving economic growth and environmental stewardship. The proposed changes to WOTUS will have substantial impacts on the ability of small companies and small landowners, which are the backbone of the American economy, to help meet the nation’s ambitious climate and infrastructure goals.

Despite bipartisan recommendations and the Small Business Administration’s own advice for EPA to engage small business stakeholders by convening a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel as required by the Regulatory Fairness Act, EPA has failed to act. The panel would ensure that the needs and priorities of small businesses are fully taken into account early in the rulemaking process.

NAHB is urging Congress to use its oversight authority to intervene and call for a SBREFA panel that formalizes small business input and provides prompt public comment through a transparent rulemaking process.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Education | Economics | Remodeling
Aug 21, 2026
Experts Forecast the Remodeling Industry's Future

NAHB’s Mid-Year Remodeling Forecast Update webinar reviewed how the remodeling industry will weather changing economic conditions, homeowner priorities and market demand.

Safety
Aug 20, 2026
OSHA Hazard Communication Compliance Deadline Set for Nov. 20

A deadline for compliance with 2024 revisions to OSHA’s Hazard Communication Standard (HCS) is approaching for home builders and other downstream chemical users. Employers must comply with revised classifications or hazard information for substances in their workplaces by Nov. 20, 2026.

View all

Latest Economic News

Economics
Aug 21, 2026
Second Quarter Declines for Single-Family Built-to-Rent

Single-family built-for-rent (SFBFR, or built-to-rent (BTR)) construction fell back in the second quarter of 2026, as a higher cost of financing, increased multifamily supply and policy concerns over Congressional legislation related to institutional capital froze parts of the development market.

Economics
Aug 20, 2026
Short-Term Townhouse Construction Weakness

Second quarter 2026 data reveal softer conditions for townhouse construction as housing affordability challenges affect homebuyer demand, particularly in larger metropolitan markets.

Economics
Aug 19, 2026
Flat Conditions for Custom Home Building

With overall single-family construction down almost 7% for the first seven months of 2026, custom home building has been a relative bright spot for the residential construction industry.