Jerry Howard, president of the National Association of Home Builders, said he was disappointed that the administration didn't sink the new rule. His organization had already filed a federal lawsuit to have the rule thrown out. The issue of wetlands preservation has long been a battleground for environmental groups and the construction industry. Under the Clean Water Act, introducing pollutants into waterways requires a permit. That ruling allowed companies to dig soil and gravel and reintroduce it into streams and waterways.
Environmentalists say the process can ruin the delicate ecology of wetlands.
The loophole also has allowed construction companies to clear land and expand channels. President Bush, who has faced growing criticism over his stewardship of the environment, went out of his way to praise the wetlands decision. But environmental groups were cautious in their optimism. Joan Mulhern, legislative counsel for Earthjustice, an advocacy group, said Bush has proved little by allowing the rule to go forward. In recent weeks, Bush has been criticized by environmental groups for his decision to break a campaign promise to limit carbon dioxide emissions.