Gov. Sarah Palin is proposing to give nearly every Alaska resident $1,200 to offset high energy costs.

The $769 million energy relief plan released Friday also proposes suspending the state's fuel tax of 8 cents a gallon for a year.

Palin says the state can afford to help residents with energy costs that, in some cases, are double or triple the national average. With oil prices at record highs, the state's coffers are bursting with revenues.

Also, the state's Division of Investments will be amending regulations to allow for low-interest loans to commercial fishermen looking to purchase more fuel-efficient engines.

It's a scaled down plan from the one first announced last month, when Palin proposed a $1.2 billion, one-year energy relief plan, which some lawmakers had expressed reservations.

That included grants totaling $475 million for utility companies operating in the state who would lower customer bills.

Palin says that option remains under review.

Her plan requires legislative approval.