Perry, contending that the climate bill would mean "economic disaster" in Texas, said the state is encouraging alternative energy sources while improving the environment.

He told the Texas Renewable Energy Industries Association on Monday that the state is achieving those goals through incentives and innovation. He said the federal climate legislation would negate the work the state has done.

Environmentalists see cap-and-trade as the best way to control carbon emissions.

Perry said Texas is a world leader in wind energy production and said progress is being made to spur production of solar, biomass and other alternative energy sources.

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