(a) The department shall establish a charter school facilities construction, lease, and major maintenance grant program that supplements grant aid otherwise available under this chapter and that is based on a per pupil funding formula.

(b) The department shall apply for available federal funding and award federal funding made available under the grant program established under (a) of this section for not more than five years for approved projects for charter school facilities construction, lease, or major maintenance as follows:

(1) 90 percent of the allowable costs for the first fiscal year for the approved project;

(2) 80 percent of the allowable costs for the second fiscal year for the approved project;

(3) 60 percent of the allowable costs for the third fiscal year for the approved project;

(4) 40 percent of the allowable costs for the fourth fiscal year for the approved project; and

(5) 20 percent of the allowable costs for the fifth fiscal year for the approved project.

(c) The grant program established in this section is subject to legislative appropriation and available funding and must be consistent with applicable federal and state requirements.

(d) A school district or regional educational attendance area that submits an application for a proposed project under AS 14.11.011 for funding under this section that is approved for funding by the department shall provide a participating share that is equal to the difference between the allowable costs of a project and the combined available federal funding and the state aid provided under AS 14.11.126. Allowable costs for a project approved under this section shall be based on the adjusted student count for a charter school calculated under AS 14.17.450(a) and (c), as determined by the commissioner.