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In the waning days of the 86th legislative session, as House and Senate lawmakers spend hours debating and voting on bills, wind and solar groups are watching for any last-minute attempt to make renewable projects ineligible for a local tax abatement program that benefits all types of industrial and commercial developments.
They have good reason to be on high alert.
Ahead of the legislative session, the conservative Texas Public Policy Foundation — the Austin-based policy institute that is an ideological beacon for many Republicans — launched a crusade against renewable energy subsidies at all levels of government. Locally, the foundation has zeroed in on property tax abatements granted under chapters 312 and 313 of the state tax code that cities, counties, school districts and other taxing entities have wielded for almost two decades to lure oil refineries and — more recently — wind farms alike.
The crux of the foundation’s argument against renewable energy subsidies is that they distort the electric market, leading to artificially low prices.
The billions in taxpayer-funded subsidies that have been awarded to renewable projects at the local, state and federal level — $16 billion, according to the foundation — “has allowed renewable energy generators ... to sell their electricity at whatever price they need to get it onto the market, which drives prices low, into negative territory,” Bill Peacock, the foundation’s vice president for research, said in an interview earlier this year.
Still, lawmakers are moving to renew both programs; Chapter 312 would otherwise expire this year, followed by 313 in 2022.
No legislation has been filed that would strip renewables from the abatement programs. But lawmakers always have the option of proposing last-minute amendments to bills just before the House or Senate vote on them.
And that’s what Jeffrey Clark, president of the pro-renewables Advanced Power Alliance, is expecting.
Mentioned in the article:
- 86th legislative session.
- property tax.
- tax abatements
- Texas Public Policy Foundation.
- state tax code.
- subsidies.
- Advanced Power Alliance.
- last-minute amendments to bills.
- University of Texas at Austin’s Energy Institute.
- corporate welfare.
- school districts.
- Todd Staples.
- Texas Oil and Gas Association.
