State leaders are promising to exclude renewables from any revived economic stimulus program.

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As Gov. Greg Abbott signals stronger support for a new program to replace the multibillion-dollar corporate tax credit program that expired last year, he is also drawing a clear line in the sand: Wind and solar power projects should not apply.

“I support [the program] without providing economic incentives for renewables,” Abbott said at a news conference in Austin. “There are already federal incentives for renewable energy projects and they will continue to be allowed. With regard to energy, power and grid in particular, we are focusing on manageable power, such as natural gas or coal.

Abbott’s comments serve as a clear benchmark as a massive coalition of business groups attempt to renew Texas’s economic development tools following the expiration of a program known as Chapter 313. companies to the state. He was tormented by bipartisan accusations of “corporate welfare”.

For Republicans, one of the most contentious aspects of Chapter 313 was how useful it is for renewable energy projects. In January, Lieutenant Gov. Dan Patrick boasted that he had closed the program due to “misuse,” stating that “about 60% of all 313 projects were renewable windmills.”

Renewable energy sources have become widespread in Texas, with a significant increase in the number of wind turbines over the past decade, as well as the number of solar farms. Texas produces more wind power than any other state. It rivals California in solar power. Both types of energy do not pollute the air and are cheap, usually outperforming sources such as natural gas for selling the electricity they generate.

Smaller rural counties especially benefited from using Chapter 313 to attract renewable energy companies to their areas, Judd Messer, vice president of the Texas Advanced Power Alliance, said in a statement. These companies funded local schools, the government, and landowners.

“It would be deplorable for Texas to risk the continued economic prosperity of these rural communities by adopting an economic development program that is exceptional,” Messer said.

Abbott’s comments came a day after State House Speaker Dade Phelan gave priority status to a new bill that seeks to chart the future of Texas’ economic development after passage of Chapter 313. The bill, House Bill 5, does not go into detail, as written, but seems to leave the door open for its use for the benefit of renewable energy projects.

When asked about the bill on Wednesday, Abbott hailed it as “a groundbreaking approach” but did not directly endorse it. He said it was “one potential idea and there will be more.”

Both Abbott and Phelan are very interested in finding a way to strengthen Texas’s economic development tools after Chapter 313 expires. But it’s less clear that Patrick will tolerate in the Senate, especially as he aggressively pushes for additional natural gas production capacity. across the state in response to the 2021 power grid failure.

In response to this storm, the Legislature is considering changing the electricity market to provide a financial incentive to build more weather-independent resources such as power plants and natural gas batteries. The House and Senate debated the Public Utilities Commission’s controversial plan to do so. Electricity costs are expected to increase, and some experts believe this won’t work.

In January, Patrick said that renewables “are good to have, keep energy prices low and help the environment, but you have to have enough dispatch capacity to meet the needs” of the state.

On Wednesday, one of Patrick’s Senate deputies, R-Mineola’s Senator Brian Hughes, also signaled that renewable energy projects would be a red line for him in any post-Chapter 313 proposal.

“Let me be clear,” Hughes said at the Austin event. “If there is a proposal for a new economic development program to provide incentives, if it has wind and solar energy, I will not just vote against it. I will do everything in my power to kill him. I can tell you that the Texas Senate will not pass with the wind and the sun.”

Hughes’ comments were echoed by Rep. Charlie Guerin of Fort Worth, a powerful House veteran serving as Phelan’s interim speaker. – I agree – Guerin. tweeted.

Hughes made comments in a panel discussion for the Texas Public Policy Foundation along with Comptroller Glenn Hegar, whose office was responsible for reviewing Chapter 313 applications. projects in the field of renewable energy sources.

“This was the largest … program in the state of Texas that allowed for more renewable wind and solar power,” Hegar said.

Emily Foxhall contributed to this report.

Disclosure: The Advanced Power Alliance and the Texas Public Policy Foundation provided financial support to The Texas Tribune, a non-profit, non-partisan news organization funded in part by donations from members, foundations, and corporate sponsors. Financial sponsors play no role in Tribune journalism. Find their complete list here.