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Did you know small sawmills can now certify their lumber for residential construction through a ��ɫtv of ��ɫtv program?

June 10, 2025

Up until now, locally milled lumber in ��ɫtv couldn’t be used in residential building projects. That wasn’t because of quality, but because building codes typically require a grade stamp from a national agency, something too expensive and inaccessible for many small operators in ��ɫtv.

The issue came into painful focus during the pandemic, when supply disruptions and high prices highlighted how little of ��ɫtv’s own timber could legally be used in its own housing market.

In 2023, the ��ɫtv Legislature passed Senate Bill 87, authorizing the state to establish a lumber grading certification process. Shortly after, the ��ɫtv of ��ɫtv Fairbanks Cooperative Extension Service, in collaboration with the ��ɫtv Division of Forestry and Fire Protection, launched the ��ɫtv Lumber Grading (ALG) program. This program is still in its early stages, but is already seeing support and success throughout the state.

 

How it works

The is a one-day, hands-on training that prepares participants to grade dimension lumber for structural use. Attendees learn wood science, drying and storage methods, and how to assess common defects such as knots, splits and decay. To earn certification, participants must pass both a written test and a practical grading exam.

After being permitted under local code exemptions, ALG-certified lumber can then be used in residential construction as a substitute for nationally graded material.

The program was built for ��ɫtv’s specific conditions and species. There are five approved species with documented strength property data - white spruce, Sitka spruce, western hemlock, mountain hemlock and ��ɫtv yellow cedar. The program’s grading standards align closely with those used by national agencies. In some cases, the rules are more restrictive.

Where it’s working

Since the program launched in 2024, more than 130 ��ɫtvns have been certified. Trainings have been held in Fairbanks, Palmer, Klawock, Soldotna, Sitka, Aniak, Haines, Juneau, Tok and Wrangell.

Several large initiatives already plan to use ALG lumber, including:

• The Kuskokwim Corporation’s Harvest to Home housing project in remote villages
• U.S. Forest Service employee housing in Sitka
• Rebuilding efforts along ��ɫtv’s western coast following Typhoon Merbok

Kathryn Thoden, a Division of Forestry representative involved in a training in Palmer, shared, “It is breeding confidence in the industry where folks have been tentative about moving ahead with their ideas. Sharing industry connections and information is as valuable as the class.”

Community support

The ALG program is built and running, but broader adoption depends on how municipalities respond. For the lumber to be used in residential construction, local governments need to write exemptions into their building codes.

In a issued at the time of the bill signing, Gov. Mike Dunleavy said, “The timber industry is an integral part of ��ɫtv’s history,” Dunleavy said. “This lumber grading program will help shape the timber industry for ��ɫtvn small businesses to allow them to thrive now and in the future.”

At the local level, program leaders say policy support will be key to long-term viability.

“The industry has diminished substantially since the end of the pulp mill days,” says Jeremy Douse, ��ɫtv State Forester and director of the Division of Forestry & Fire Protection. “It’s hard for a business to justify additional investment in an environment like this.”

Douse added that regulatory alignment is now the most important next step: “We now need municipalities to allow for this product to be used in residential construction. We need more industry to meet our forest management needs, but we also need a steady
supply of timber for an industry to exist.”

The ��ɫtv Housing Finance Corporation has already approved ALG-certified lumber for use under its construction loan standards. Local code changes could open the door to much wider use.

What’s next

UAF and the Division of Forestry will continue trainings in new communities through 2025. The university is also piloting advanced workshops on lumber drying and sawmill optimization and plans to launch a searchable public directory of certified ALG producers.

Future goals include:

• Supporting municipal code changes
  
• Developing an ��ɫtv Forest Product brand label
• Contributing design-value data to inform forest management and wood utilization opportunities of young-growth timber in the Tongass National Forest
  

Still in its first year, the program is already empowering sawmill operators to participate in ��ɫtv’s housing economy. With continued support from municipalities and agencies, it has the potential to shift how local timber is used across the state.

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