NAHB Provides Analysis on New EPA Water Rule

Environment
Published

The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Corps) announced a new “waters of the United States” (WOTUS) regulation on Jan. 23, at the International Builders’ Show in Las Vegas. The new regulation, the Navigable Waters Protection Rule (NWPR), redefines the federal definition of WOTUS under the Clean Water Act (CWA).

The NWPR addresses many of the concerns NAHB had with prior rules, including uncertainty over where federal jurisdiction begins and ends. Improvements compared to the prior rule include:

  • Eliminates “significant nexus” test: The onerous significant nexus test is no longer relevant due to the NWPR’s focus on features that maintain a surface connection to traditional navigable waters.
  • Encompasses fewer adjacent wetlands: Because the NWPR only asserts federal authority over wetlands that have a surface connection to other jurisdictional waters in a typical year, it does not encompass the “neighboring” and “similarly situated” waters covered by the 2015 rule.
  • Excludes ephemeral waters: The NWPR does not extend federal jurisdiction to waters that form only in response to rainfall. The 2015 rule included many ephemeral features.
  • Narrows federal jurisdiction over tributaries: Because the NWPR requires tributaries to maintain intermittent or perennial flow, it does not depend on physical observations of “bed and banks and an ordinary high-water mark” that could form during ephemeral flow and last long after that flow ceased. Such physical features established jurisdiction under the 2015 rule.
  • Excludes more ditches: The NWPR excludes all ditches unless they satisfy the conditions of a traditional navigable water or tributary. In comparison, the 2015 rule regulated all ditches unless they met narrow exemptions.

In general, compared to prior rules, the NWPR subjects less area to federal oversight, eliminates ambiguous tests and provides landowners with greater certainty, and focuses on conditions that are more easily observable, making it easier to implement in the field.

To help builders and developers better navigate these changes, NAHB has issued a full analysis of the NWPR.

For more information, visit nahb.org or contact Evan Branosky at 800-368-5242 x8662.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Design | IBS

Jan 09, 2026

From Décor to Resiliency, IBS Design Central Covers It All

At the 2026 NAHB International Builders’ Show® (IBS) in Orlando Fla., there will be education sessions centered on design. Design Central will offer engaging presentations led by some of the industry’s top professionals, covering everything from décor to sustainability. Here are the Design Central presentations, all taking place at the Orange County Convention Center (OCCC).

IBS

Jan 09, 2026

Final Touches Underway at The New American Home 2026

Watching a new home come to life in the final stages of construction is a satisfying experience—not just for the owners, but for the builder as well. That feeling is only amplified when the home is a focal point of the International Builders’ Show (IBS)—the industry’s largest trade show.

View all

Latest Economic News

Economics

Jan 09, 2026

Townhouse Construction Share Gains Continue

According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the third quarter of 2025, single-family attached starts totaled 46,000. Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 1% higher than the prior four-quarter period (177,000). Townhouses made almost 20% all of single-family housing starts for the third quarter of the year.

Economics

Jan 09, 2026

Job Growth Slowed as 2025 Ended

Job growth continued to slow at the end of the year, reinforcing signs of a cooling labor market. Nonfarm payrolls increased by 50,000 jobs in December, while the unemployment rate edged down slightly to 4.4%.

Economics

Jan 09, 2026

Residential Construction Softens Amid Ongoing Housing Market Headwinds

The latest residential housing market report, delayed by the federal government shutdown last fall, indicates that builders have faced significant headwinds in recent months. Elevated mortgage rates earlier in the year have restrained buyer demand and weighed on home building activity, alongside persistently high construction costs.