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

Advocacy | BUILD-PAC
Oct 15, 2026
Midterm Elections: 3 Ways Members Can Make a Difference on Nov. 3

Elected officials at all levels play a role in finding solutions to make housing more affordable. Here’s how NAHB members can make a difference this election cycle.

Environmental Issues
Oct 14, 2026
NAHB Supports Supplemental WOTUS Proposal, Calls for Clear Final Rule

NAHB submitted comments on Oct. 9 supporting the Trump administration’s September 2026 supplemental waters of the United States (WOTUS) proposal. The proposal creates a new framework for determining which waters and wetlands are federally regulated under the Clean Water Act.

View all

Latest Economic News

Economics
Oct 14, 2026
Labor Shortages a Growing Problem

Labor shortages in the home building industry are becoming more widespread, according to recent results from the NAHB/Well Fargo Housing Market Index (HMI) survey.

Economics
Oct 14, 2026
Inflation Accelerated in September

Higher energy prices pushed inflation to a four-month high in September, keeping pressure on the Fed as inflation has remained above its 2% target for more than five years.

Economics
Oct 13, 2026
Existing Home Sales Increased in September

Existing home sales rose after three months of declines as improved inventory gave buyers more negotiating power. As buyers wait for rate relief, homes are sitting on the market longer and for-sale inventory reached the highest level in over a decade.