Supreme Court Rules Against EPA in Permitting Case Supported by NAHB
The U.S. Supreme Court yesterday handed down a decision in San Francisco v. EPA, a case concerning the Environmental Protection Agency’s duties to provide a path to compliance for certain clean water permits. NAHB filed an amicus brief in the case.
The case concerned “water quality standards” related to federal wastewater permits and how EPA must describe a permittee’s duties to meet those standards. In San Francisco’s permits, EPA said that the city had to meet the receiving waters’ — in this case, the Pacific Ocean — “water quality standard” without telling the city how that should be accomplished. San Francisco claimed this condition violated the Clean Water Act (CWA) and the Supreme Court agreed.
NAHB filed an amicus brief in the case over the concern that if the court agreed with San Francisco’s argument, it could go too far and require EPA to include numeric discharge limits in CWA permits.
A large portion of NAHB members must comply with “construction general permits” (CGPs) due to their earthwork on site. CGPs contain “narrative” permit conditions, often referred to as “best management practices.” NAHB’s brief explained how narrative permit conditions comply with the CWA and cautioned the court not to eradicate them.
In deciding the case, the court focused on the words of the CWA that direct EPA to create limitations in permits to “meet” or “implement” water quality standards. It provided that simply telling permittees to comply with water quality standards does not explain how to “meet” or “implement” them. As a result, the court ruled in favor of San Francisco.
Moreover, the court went out of its way to ensure that the narrative requirements were not at issue in this case and that such requirements are allowed by the CWA. In fact, the court cited NAHB’s brief twice to make these points.
Latest from NAHBNow
Registration for the 2027 International Builders’ Show (IBS), taking place Feb. 2-4 in Las Vegas, opens Sept. 1. Make the most of your IBS experience by adding education courses, special events and more when you register.
Building material costs increased by 6.7% over the past 12 months, according to results from the survey for the July 2026 NAHB/Wells Fargo Housing Market Index (HMI).
Latest Economic News
The latest report shows the Federal Reserve’s preferred inflation gauge remains sticky in July, complicating the Fed’s path to its long-term 2% target. Meanwhile, consumer spending remains resilient but is showing signs of slowing, with real consumer spending unchanged in July. Households are pulling back on spending amid persistent inflation.
Multifamily missing middle construction declined during the second quarter of 2026.
Elevated borrowing costs, rising inflation and broad economic uncertainty continue to curb buyer demand and hold back new home sales.