AK SB119

Establishes an energy efficiency grant fund in the Alaska Housing Finance Corporation to provide grants for energy efficiency projects to municipalities, unincorporated communities, school districts, and the University of Alaska.

Requires the Department of Transportation and Public Facilities to prepare a state energy use reduction plan starting one year after the bill's effective date, including improvements to state facilities and standards for new public facilities based on the International Energy Conservation Code.

Mandates that agencies requesting $1,000,000 or more for capital improvements to existing public facilities submit energy audit reports, energy efficiency improvement proposals, and cost-savings analyses with their budget requests.

Requires the Department of Transportation and Public Facilities to submit an energy audit report to the legislature by January 31, 2010, summarizing information and recommendations from recent energy audits.

Allows the state to consider performance energy contracts for efficiency improvements, where payment is conditional on achieving specified energy savings, with costs recoverable over a 15-year period.