Anchorage Daily News

JUNEAU -- A proposal to send each Alaskan a $500 check to help offset high fuel costs seems to be gaining new energy, at least in the House of Representatives.

Members of the key House Finance Committee held a hearing on House Bill 396 this week, focusing much of the debate on whether all Alaskans or just lower income people should receive the so-called energy rebate.

The committee's co-chairmen, Rep. Kevin Meyer, R-Anchorage, and Rep. Mike Chenault, R-Nikiski, sounded as though they're seriously considering a mass payout as a way to share Alaska's multibillion-dollar oil revenue surplus.

"The governor's been very clear that Alaska oil is the people's oil and that's why we have all this extra money, bottom line, is because of the oil, and so we should share it with the people of Alaska -- all the people of Alaska," Meyer said.

He argued against the notion that the government knows how to spend the money more wisely than ordinary citizens, and said people shouldn't be denied a check based on whether they're rich or poor.

"I wholeheartedly agree," Chenault said. "I don't know where we get the Robin Hood mentality."

The tenor of the Wednesday hearing seemed to breathe fresh life into HB 396, sponsored by Rep. Bill Thomas, R-Haines.

If the bill can muster the votes to pass the Finance Committee and the full House, it would then go to the Senate.

The reception there, however, is expected to be less friendly.

The bill proposes tapping Alaska Permanent Fund profits to cover the $300 million cost of adding an extra $500 to each person's dividend check this fall.

Meyer, however, said it probably would be better to use some of the state's oil surplus money rather than tapping Permanent Fund profits to pay the energy rebate.

Spending Permanent Fund profits for anything other than paying dividends long has been unpopular with Alaskans and thus taboo for Alaska lawmakers.

Thomas said he got the energy rebate idea after hearing from a Metlakatla friend who is legally blind, diabetic and suffered polio and who didn't have enough money one month to buy heating fuel. So he went out and split firewood.

"I says, 'You're blind. You didn't cut your toe off?' " Thomas told his fellow Finance Committee members. "He said, 'Oh, I was careful.' "

Thomas said Alaskans might use the $500 to pay their heating bills or they might buy food, prices for which have also risen because of high transportation fuel costs.

Meyer acknowledged some people might use their energy rebate to buy a television set at Costco.

"I don't know if we necessarily care because that also is going to help the economy, which needs a little boost in all cities throughout the state," Meyer said. "So it sounds like a program that has some merit and is certainly worth discussing."

Rep. Les Gara, D-Anchorage, said he has a hard time justifying payments to doctors, accountants, lawyers and a certain former governor and hotel owner.

"When you don't provide a thousand-dollar check to Wally Hickel, that's not discrimination," he said.

Rep. Harry Crawford, D-Anchorage, said he understands how handing out money to the people could be a tempting move for politicians, invoking the name Huey Long, the populist former governor of Louisiana where Crawford grew up.

"Now maybe he'll just have to move over," Crawford said, drawing laughs.

But Crawford said he'd rather see the state invest in alternative energy projects such as wind and geothermal to wean Alaskans off high-priced fuels, not hand out money.

Fuel prices are likely to be high again next year, he said.

"Once we've issued this check to everybody across the state, then it's going to be hard not to issue it next year or the year after or the year after," Crawford said.

The energy rebate could face its strongest foes in the Senate.

In interviews Thursday, the two co-chairmen of the Senate Finance Committee noted they are more focused on long-term solutions to reduce energy consumption and costs. Already, the Senate has passed a bill to steer $300 million into low-income home insulation and energy efficiency programs.

But Sen. Lyman Hoffman, D-Bethel, said it's still possible the Senate might consider rebate checks depending on what the House does.

"If they make it a high enough priority, we'll look at it," Hoffman said.

Gov. Sarah Palin also is open-minded.

"In principle, getting dollars into the pockets of Alaskans to help with the high price of energy is something the governor would seriously consider," said Palin spokeswoman Sharon Leighow.

Find Wesley Loy online at adn.com/contact/wloy or call him in Juneau at 1-907-586-1531.

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