Palin’s budget director Karen Rehfeld said that the governor was still committed to renewable energy, but with 2010 budget likely to have a significant deficit at estimated oil prices, it was not a good idea to take money out of savings for new spending now.

We want to do everything we can to extend the life of our savings, Rehfeld said.

With the $25 million proposed, which the Legislature will have to approve, that will allow the effort to continue, Rehfeld said.

Senator Lyman Hoffman, D-Bethel has cautioned against decreasing support just because fuel prices in cities are down now.

I want to see renewable energy throughout Alaska, Beth Kerttula, D-Juneau.

said. I think it is the way out of our continuing energy crisis.

Republican Mike Doogan, D-Anchorage, supported Palin’s action.

In 2008, the Legislature created the Renewable Energy Fund, and started it off with $50 million. During the summer, as energy prices in rural communities rose while oil revenues flowed into the state treasury, the Legislature added another $50 million.

The Legislative Budget and Audit Committee last week just gave final approval to spend $94.8 million on 77 projects around Alaska.

They’ve got plenty to do without giving them another $50 million worth of projects next year, Doogan said.

While lower crude oil prices are reducing the costs of energy today, we must remain committed to achieving energy security for our future well-being, Palin said.

The leader that we have been in this nation as a supplier of energy for 30 years, we’ve got to be that same leader when it comes to renewables, Senator Lisa Murkowski said.

Lisa Murkowski suggested in her address to the Alaska Legislature that Juneau should even find source of renewable energy to use as its emergency backup when its hydroelectric power is not available.

For crying out loud, in the capital of our state, the power goes down and turn on the diesel generators, Lisa Murkowski said. We’ve got to be doing better.