The ALG program establishes substitute equivalents for three grades of dimension lumber within the Sturctural Light Framing and Stud classifications that are commonly used in residential construction. The ALG grades are derived from the existing lumber grade-stamp infrastructure.

The objective of the Alaska Lumber Grading program is to provide an alternative to the grade stamp infrastructure in order to expand opportunities for the production and use of locally produced dimension lumber for homebuilding. The scope of the Alaska Lumber Grading system is limited to three commonly used dimension lumber grades relevant to residential construction that correspond, but are not equal nor identical, to lumber grades established by accredited grading Bureaus. The limiting characteristics for each grade are closely based on those developed and maintained by an accredited grading Bureau, and in some instances are more restrictive. In effect this simplifies learning and applying the grading system and reduces the chance of errors.