When organizers set out to overturn Texas’s giveaway program for the oil and gas industry, they had a long game in mind. Over 20 years, the tax exemption program known as Chapter 313 had delivered $10 billion in tax cuts to corporations operating in Texas — with petrochemical firms being the biggest winners. This year, for the first time in a decade, the program was up for reauthorization. Organizers decided to challenge it for the first time.
At the beginning of last week, as Texas’s biennial legislative session approached its end, the aims of organizers remained modest. “We thought it would be a victory if the two-year reauthorization passed so we could organize in interim,” said Doug Greco, the lead organizer for Central Texas Interfaith, one of the organizations fighting to end the subsidy program.
At 4 a.m. last Thursday, it became clear that something unexpected was happening: The deadline for reauthorization passed. “The bill never came up,” Greco told The Intercept. Organizers stayed vigilant until the legislative session officially closed on Monday at midnight, but the reauthorization did not materialize....
“No one had really questioned this program,” said Greco, of Central Texas Interfaith. The reauthorization was a once-in-a-decade chance to challenge it. “We knew in our guts that the program was just a blank check, but we also are very sober about the realities of the Texas legislature.”
....As legislators met in a closed session to hammer out the bill, Greco heard from a colleague. “One of my organizers said there’s 20 oil and gas lobbyist standing outside this committee room,” he recalled.
Former Gov. Rick Perry, an Energy Transfer board member, tweeted his support for reauthorization. But as last week of the session ticked by, the bill didn’t come up. “It became clear that the reputation of the program had been damaged,” Greco said.
In 19 months, Texas’s subsidy program will expire, but that doesn’t mean the fight is over.
“We know there’s going to be a big conversation over the interim — we are under no illusions that this is not going to be a long-term battle.”
Organizers, though, recognize that the subsidy’s defeat marks a shift: “The table has been reset.”
In Blow to Big Oil, Corporate Subsidy Quietly Dies in Texas, The Intercept [pdf]
How Skeptical Texas Lawmakers Put an End to a Controversial Tax Incentive Program, Houston Chronicle [pdf]
Texas Legislature Dooms Chapter 331, Which Gives Tax Breaks to Big Businesses, Business Journal [pdf]
Missed Deadline Could Doom Controversial $10B Tax-Break Program, Houston Chronicle [pdf]
Losers and Winners from Chapter 313, Central Texas Interfaith
Valley Interfaith, Texas IAF Declare State Power Failure 'Act of Sheer Negligence' & Demand Accountability from Elected Officials
While state officials announced later in the day that power had stabilized and forced shutoffs were no longer needed, more than 300,000 households remained without power....Texas was especially hard hit because most of its power grid is isolated from the interconnected networks serving the eastern and western parts of the U.S. That made it difficult to import energy from other states when frozen pipes shut down generating station.
The failure of Texas' electric grid led faith leaders across the state on Thursday to call out Gov. Greg Abbott for a lack of leadership and preparation. They urged him to request assistance from the Federal Emergency Management Administration and dip into the state's $10 billion "rainy-day" fund to help Texans cover expensive home repairs and energy bills.
They also called on state leaders to act on a 2012 plan to modernize and weatherize the electric grid....
"We are calling for Gov. Abbott to first take responsibility for this gross negligence and stop finger-pointing. This is a gross act of negligence that has caused harm to the whole state of Texas, and it's time to put people over profits," the Rev. John Ogletree of the First Metropolitan Church of Houston said at a virtual press conference Thursday. The event was organized by the Network of Texas IAF Organizations, a nonpartisan coalition of 10 mostly faith-based organizations statewide that represents more than 1 million people.
"The state leadership has known that this needed to change, and they have done nothing," Elizabeth Valdez, director of Texas IAF, told EarthBeat.
"The storm may have been an act of nature, but the devastation of the electrical grid shutdown is an act of sheer negligence," Auxiliary Bishop Greg Kelly of the Dallas Diocese added in a statement.
Kelly and other faith leaders who spoke during the press conference and with EarthBeat described the struggles facing their state's people because of the freeze: Temperatures in homes hovering at 30 degrees. Elderly people unable to use dialysis machines. A 76-year-old woman sleeping in her car for warmth. Churches that would typically offer shelter could not because they too lacked power and water...
Press Conference Footage, Facebook Live
Valley Interfaith Fights for Expansion of Housing Relief, Hidalgo Starts with $7.5M in Rent and Mortgage Support
Eddie Anaya, a member of Valley Interfaith, asked commissioners during the public comment section of the meeting to consider raising the program’s funding to $25 million.
“In just over three months, as of May 18, 2020, the Texas Workforce Commission reported 25,667 residents in Hidalgo County lost their job and filed for unemployment,” Anaya said. “Then there’s the other countless taxpayers and residents from Hidalgo County who are ineligible for unemployment, insurance or CARES Act benefits. Valley Interfaith is proposing that you help these families through a renter’s assistance program.”
Joe Hinojosa, a Valley Interfaith leader from Holy Spirit Church in McAllen, said the pandemic has been “incredibly painful” and noted that nearly 40% of Hidalgo County residents are uninsured.
Through the nonprofit, he also urged commissioners to increase funding for the Indigent Health Program. They are currently investing $6.1 million, Hinojosa said, urging them to increase it to $15.3 million, or 8% of the county’s total budget. Hinojosa also suggested commissioners loosen that program’s restrictions and allow families that are at 100% or below the federal poverty line to apply for healthcare assistance, as opposed to the current cutoff at 30%.
[Photo credit: Joel Martinez]
Hidalgo Co. Starts $7.5M Rent, Mortgage Relief Program, The Monitor [pdf]