State Rep. Jay Ramras on Tuesday challenged Craig Campbell's hold on the lieutenant governor's job, setting up a race to win the Republican nomination in the August primary.

Campbell was appointed to the position when Sean Parnell, who had been the lieutenant governor, took over the governor's office in July after the resignation of Sarah Palin.

Ramras, a Fairbanks businessman, has been a biting critic of the Palin-Parnell administration's oil tax increase as well as its approach to pursuing a natural gas pipeline to the Lower 48. He said the Alaska Gasline Inducement Act has failed and the state needs a "reset" in dealing with economic issues.

"There are some people I served with in the Legislature, I think Gov. Parnell would fall into this category, that define fiscal conservatism by trying to shrink or slow the growth of government. But what I feel like we're lacking are economic conservatives working aggressively to try and expand the economy," Ramras said.

Campbell said it seems to be the "buzz of the time" to criticize the Alaska Gasline Inducement Act, which ties the state to the Canadian firm TransCanada. But he said Gov. Tony Knowles didn't get a gas pipeline deal and was followed by Gov. Frank Murkowski, who was criticized for giving away too much to the oil companies in his pursuit of a deal.

"So they elected Sarah Palin, who gave them a very different plan than Frank Murkowski. Now they're saying they don't like that. I think politicians cannot keep shifting what the story is and bring a solution," Campbell said.

Campbell said industry needs to show what the market needs to make the project work.

A lieutenant governor has few official duties, other than overseeing the division of elections and staying alive in case the governor dies or leaves office early. But Campbell and Ramras both talk about trying to use the job to accomplish broader aims.

Campbell, in announcing his plan to run for the office last week, characterized himself as offering a voice in the governor's office for protecting "conservative values." He put out a statement saying he wants to ensure "Alaska residents never have to pay an income tax, or statewide sales tax."

Ramras said the taxes Campbell brought up aren't on the table.

"That's great that is what he's concerned about. I'm interested in expanding the economy and not as worried about protecting Alaskans from bogeymen that haven't been proposed yet," he said.

Campbell said he intends to use the lieutenant governor's office to pursue economic expansion as well as less spending. "A conservative for reducing the size and cost of government is very important and that's what I stand for. Coupled with that, though, just as important, is providing jobs," Campbell said.

Campbell, a former commander of the state National Guard, has also been an aviation consultant and was on the Anchorage Assembly for almost a decade. Ramras is a three-term state representative and owns Pike's Waterfront Lodge, Pike's Landing, and the Food Factory restaurant in Fairbanks.

No Democrats have yet filed to run for lieutenant governor next year.