House approves clean-power incentives

The Texas House on Monday tentatively approved giving up to $100 million in tax credits to three first-come companies that develop and implement clean energy technology in coal-fired power plants.

Supporters said it was an earned incentive that would likely not affect the state's revenue or budget for 5 to 10 years, because the three projects approved for the incentives would have to build the clean coal plants and prove carbon capture and energy production.

Yet, Rep. Sylvester Turner , D-Houston, said the incentives were money that could be going to consumer relief on property tax and college tuition in a rough economy.

Weatherford Republican Rep. Phil King , one of several representatives backing the measure, said the exemption from the state's franchise tax would be a drop in the bucket compared to the funds it would take to get the plants up and running and the money the companies would generate in the future.

"I truly don't believe we're going to get clean coal technology built in Texas without this," King said of the incentives.

In order for a clean energy project to receive the tax credit, it would have to meet standards including a 200 megawatt production rate while capturing 70 percent of their carbon dioxide emissions.

Monday's passage of the measure rounded out two separate days of lengthy and heated debate on the house floor about what kinds of clean energy projects would be eligible, where the incentive money should come from and how much should be used for the incentives.