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Gov. Sarah Palin on Thursday vetoed portions of the state budget, including controversial federal energy funds that are part of President Barack Obama's stimulus package.

Palin challenged the Legislature to overturn her vetoes, if they disagreed with them.

Legislative leaders had spent much of the session feuding with Palin on stimulus acceptance and other issues, but had reached agreement on almost everything other than the energy funds.

She vetoed a total of $80.3 million from some of the six appropriations bills passed by the Legislature this year.

The energy funds she vetoed, which would be provided by the federal government, were the largest single item at $28.6 million.

"This seems completely political to me, it's the wrong thing to do," said Rep. Beth Kerttula, D-Juneau.

Palin said that accepting the money would require Alaska to adopt a statewide energy efficiency code. Top legislators disagreed, but Palin on Thursday reiterated that claim.

"Alaskans and our communities have a long history of independence and opposing many mandates from Washington, D.C.," she said in a statement. "The question of whether or not to adopt energy building codes is best determined by local governments, not Washington, D.C."

Juneau Mayor Bruce Botelho, Kerttula, U.S. Sen. Mark Begich, and bi-partisan leaders of the House and Senate Energy Committees, were among those urging acceptance of the money.

"This issue has been researched thoroughly by legislative staff and we couldn't find one string attached to those funds," said Rep. Charisse Millett, R-Anchorage, co-chair of the House Special Committee on Energy.

The vetoed federal money would have provided the Alaska Housing Finance Corporation money to increase energy efficiency programs, such as home insulation and weatherization. That's something needed throughout Alaska, but especially in rural and northern areas, said Sen. Bert Stedman, R-Sitka, co-chair of the Senate Finance Committee.

"If there was ever a state in the union that energy was important to, it's the state of Alaska," he said.

"I think she's playing politics, Wasilla politics or maybe national politics, but certainly not Alaska politics," Stedman continued.

Rep. Harry Crawford, D-Anchorage, said 49 other state's have found a way to accept the energy money, but that was disputed by Karen Rehfeld, director of the Office of Management and Budget.

Rehfeld said it was possible that Wyoming also was rejecting the money.

"There may be another state, we don't have the final answer on that," she said.

A legislative override of a gubernatorial veto takes 75 percent of each chamber of the Legislature, and is difficult to accomplish so it is rarely done.

"The governor noted that if legislators disagree with her decision, they can express that through a veto override," said Palin spokesperson Sharon Leighow, in a statement accompanying the vetoes.

Palin also vetoed four projects funded by cruise ship head tax in Southeast, two projects improving cruise ship berths in Ketchikan, and two projects in Sitka improving Crescent Harbor and Swan Lake.

Palin provided no reasons for those vetoes, and Stedman said there likely were no reasons.

"I think there is no sound policy reason," he said.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com.