Anchorage Daily News

Alaska lawmakers may be forced into a special session if they want to override Gov. Sarah Palin's veto of federal energy conservation money.

U.S. Department of Energy officials said this week they're unwilling to wait until the regular legislative session in January to see if lawmakers will override Palin's veto and apply for $28.56 million in State Energy Program money.

That means legislators would have to gather in a special session for a showdown on the money, which can be used to improve the energy efficiency of Alaska homes or public buildings, promote sound weatherization construction, or for a variety of other energy projects.

Palin initially said she would not accept about one-third of the $930 million Alaska was eligible for under the American Recovery and Reinvestment Act, citing "strings" that could bind the state to federal mandates and increase the size of government.

Legislators found few strings and passed a bill accepting all federal money. Palin accepted all the stimulus funds except for $28.56 million in energy cost relief.

As critics accused her of trying to bolster her credentials as a conservative budget hawk, Palin said she rejected the stimulus money because it came with a requirement to adopt building codes.

"There isn't a lot of support for the federal government to coerce Alaska communities to adopt building codes," she said in a statement announcing the veto in May.

Larry Persily, an aide to Rep. Mike Hawker, R-Anchorage, co-chairman of the Finance Committee, was the Legislature's point man for the economic stimulus money. He questioned Palin's interpretation of the requirements for accepting the money.

"The Department of Energy wants states to certify that they're going to try to spread the gospel of energy efficiency and energy efficiency standards," he said. "There is no requirement that the state has to impose standards on communities or force communities to adopt standards. They're looking for a pledge, a commitment to promote energy efficiency. That's it."

Alaska has the highest energy costs in the nation and already promotes energy efficiency, he said.

"I guess most legislators don't see the harm in signing a piece of paper saying we're going to keep doing it," Persily said.

Energy Department officials said Wednesday that they will not wait until January to receive Alaska's application for the $28.56 million, Persily said.

Still to be resolved is what the executive branch will do with the money if lawmakers override the veto.

State Energy Program money, at far lower funding levels, historically has been divided evenly between the Alaska Housing Finance Corp., which manages programs designed to improve the quality of Alaska housing, and the Alaska Energy Authority, which has the mission of lowering the cost of energy to Alaskans.

A veto override is just one reason for a special session. Lawmakers received a legal opinion Wednesday that a new lieutenant governor cannot take office without their approval.

Palin last week announced she will step down July 26 and hand the reins of government to current Lt. Gov. Sean Parnell.

Palin in February chose Corrections Commissioner Joe Schmidt to follow Parnell in the succession line. Schmidt was approved by the Legislature.

In her resignation speech, however, Palin said Military and Veteran Affairs Commissioner Craig Campbell would be the choice for lieutenant governor.

House Speaker Mike Chenault, R-Nikiski, has said he favors calling a special session but there is little chance of that happening before Palin leaves.

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