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Texas files lawsuit challenging new EPA rule on deadly soot pollution

Texas — along with 24 other states — has filed lawsuits against a recent set of soot pollution standards from the EPA. Photo via Pixabay/Pexels

A new Biden administration rule that sets tougher standards for deadly soot pollution faced a barrage of legal challenges Wednesday, as 25 Republican-led states — including Texas — and a host of business groups filed lawsuits seeking to block the rule in court.

Twenty-four states, led by attorneys general from Kentucky and West Virginia, filed a joint challenge stating that new Environmental Protection Agency rule would raise costs for manufacturers, utilities and families and could block new manufacturing plants and infrastructure such as roads and bridges. Texas filed a separate suit, as did business groups led by the U.S. Chamber of Commerce and National Association of Manufacturers.

“The EPA’s new rule has more to do with advancing President (Joe) Biden’s radical green agenda than protecting Kentuckians’ health or the environment, said Kentucky Attorney General Russell Coleman, who is leading the joint lawsuit along with West Virginia Attorney General Patrick Morrisey.

The EPA rule “will drive jobs and investment out of Kentucky and overseas, leaving employers and hardworking families to pay the price,” Coleman said.

The soot rule is one of several EPA dictates under attack from industry groups and Republican-led states. The Supreme Court heard arguments last month on a GOP challenge to the agency's “good neighbor rule,” which restricts smokestack emissions from power plants and other industrial sources that burden downwind areas.

Three energy-producing states — Ohio, Indiana and West Virginia — challenged the rule, along with the steel industry and other groups, calling it costly and ineffective. The rule is on hold in a dozen states because of the court challenges.

In opposing the soot rule, Republicans and industry groups say the United States already has some of the strictest air quality standards in the world — tougher than the European Union or major polluters such as China and India.

Tightening U.S. standards "wouldn't improve public health, but it would put as many as 30% of all U.S. counties out of compliance under federal law, leading to aggressive new permitting requirements that could effectively block new economic activity,'' Coleman said.

The EPA rule sets maximum levels of fine particle pollution — more commonly known as soot — at 9 micrograms per cubic meter of air, down from 12 micrograms established a decade ago under the Obama administration.

Environmental and public health groups hailed the rule as a major step to improve the health of Americans, including future generations. EPA scientists have estimated exposure at previous limits contributed to thousands of early deaths from heart disease and lung cancer, along with other health problems.

EPA Administrator Michael Regan said the new soot rule, finalized last month, would create $46 billion in net health benefits by 2032, including prevention of up to 800,000 asthma attacks and 4,500 premature deaths. The rule will especially benefit children, older adults and those with heart and lung conditions, Regan said, as well as people in low-income and minority communities adversely affected by decades of industrial pollution.

"We do not have to sacrifice people to have a prosperous and booming economy,″ Regan said.

Biden is seeking reelection, and some fellow Democrats have warned that a tough new soot standard could harm his chances in key industrial states such as Pennsylvania, Michigan and Wisconsin.

The EPA and White House officials brushed aside those concerns, saying the industry has developed technical improvements to meet previous soot standards and can adapt to meet the new ones. Soot pollution has declined by 42% since 2000, even as the U.S. gross domestic product has increased by 52%, Regan said.

The new rule does not impose pollution controls on specific industries. Instead, it lowers the annual standard for fine particulate matter for overall air quality. The EPA will use air sampling to identify counties and other areas that do not meet the new standard. States would then have 18 months to develop compliance plans for those areas. States that do not meet the new standard by 2032 could face penalties, although EPA said it expects that 99% of U.S. counties will be able to meet the revised annual standard by 2032.

Industry groups and Republican officials dispute that and say a lower soot limit could put hundreds of U.S. counties out of compliance.

The U.S. Chamber of Commerce warned the White House in January that 43% of total particulate emissions come from wildfires, and called the pollution standard "the wrong tool to address this problem.''

The EPA said it will work with states, counties and tribes to account for and respond to wildfires, an increasing source of soot pollution, especially in the West, where climate change has led to longer wildfire seasons, with more frequent and intense fires. The agency allows states and air agencies to request exemptions from air-quality standards due to “exceptional events," including wildfires and prescribed fires.

Besides Kentucky, West Virginia and Texas, other states challenging the EPA rule include: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah and Wyoming.

All three cases were filed before the U.S. Court of Appeals for the District of Columbia.

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A View From HETI

Houston-based SLB says the acquisition will help it dramatically scale revenue generated by its data center business. Photo courtesy SLB

Houston’s SLB has announced plans to acquire German thermal management and heat exchange technology organization Kelvion for approximately $4 billion.

SLB reports in a news release that the acquisition is expected to boost its Data Center Solutions business, as thermal management technologies are key to cooling artificial-intelligence-related infrastructure. Data centers continue to pose numerous challenges, but SLB believes thermal management technology can help ease energy burdens.

“Data centers are becoming more sophisticated and energy-intensive, and customers are increasingly looking for partners that can optimize how critical systems work together across the facility and help bring new capacity online faster,” Gavin Rennick, president of SLB’s New Energy and Industrial business, said in the release. “Thermal management is central to that challenge, and this acquisition allows us to address it directly by delivering more integrated cooling solutions, accelerating innovation, optimizing thermal efficiency, and more directly embedding thermal management into our modular infrastructure offering.”

SLB will acquire Kelvion from funds managed by New York-based financial services group Apollo Global Management Inc. for approximately $3.4 billion in cash and will assume about $700 million of debt, according to the release. The deal is expected to close in Q1 of 2027.

SLB says the acquisition will help it dramatically scale revenue generated by the data center sector.

“This transaction accelerates our ambition to become an industrial technology partner to the data center industry and help customers address the growing infrastructure complexity required to scale AI,” Olivier Le Peuch, CEO of SLB, added in a news release. “Kelvion advances our path toward more integrated data center infrastructure solutions, expands our addressable market — more than doubling our revenue opportunity per gigawatt of delivered capacity — and allows us to scale both our offerings and the global reach of the business.”

SLB reports that it expects its Data Center Solutions business revenues to grow by more than 90 percent annually between 2024 and 2026.

If the acquisition is approved, the combined company will target revenue of $4.5 billion to $5 billion for its data center solutions business in 2028, according to the release.

Kelvion has previously served customers in AI infrastructure, energy system transformation and energy/ industrial markets. Its past work focuses on heat pumps, renewables, carbon capture and processing solutions for thermal management. According to the news release, Kelvion's data center revenue is expected to reach about $1.2 billion in 2026, and the sector is considered the company’s "largest and fastest-growing end market.

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