Funding For Community Wood Energy Systems & Facilities

The U.S. Forest Service (Forest Service) has announced the availability of up to $5 million in funding to install a thermally led community wood energy system or build an innovative wood product facility. Applications are due January 19, 2022

What is the purpose of the Forest Service Community Wood Energy and Wood Innovations Grant Program?

The intent of the Community Wood Energy and Wood Innovation Grant Program (Community Wood Grant Program) is to support forest health and stimulate local economies by expanding renewable wood energy use and innovative wood products manufacturing capacity.

The Forest Service solicits proposals for projects that will achieve the following:
  • Expand thermally led community wood energy or innovative wood product opportunities,
  • Improve forest health; and
  • Stimulate local economies.
Who is eligible to apply?

Eligible applicants for this program include: non-profits; local, state, and tribal governments; businesses, companies, corporations (for profit); institutions of higher education; and special purpose districts.

What projects are eligible?

This funding opportunity is intended for shovel ready projects that will not require additional funding or time to complete after the award period.

Examples of eligible projects include, but are not limited to:
  • Install a thermally led community wood energy system for heating, cooling, and/or electricity that replaces fossil fuels such as coal, oil, propane, or natural gas.
  • Purchase and install manufacturing equipment at a mass timber production facility.
  • Expand a sawmill to add higher value production lines that incorporate innovative technologies and cost cutting measures.
  • Purchase and install equipment at a new facility to produce biofuels from forest residues.
What are other project priorities?
Priority will be given to projects that:
  • Are located where markets are needed for low-value or low-quality wood.
  • Are located where the project will aid forest restoration.
  • Use or retrofit an existing sawmill facility where the average annual unemployment rate exceeds the national average unemployment rate by more than one percent in calendar year 2019.
  • Use the most stringent control technology that has been required or achieved in practice for a wood-fired boiler and will operate in a location with limited access to natural gas pipelines.
  • Support, benefit, or engage communities that are historically underserved, marginalized, and adversely affected by persistent poverty or inequality (pursuant to Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government).
What are the funding levels for this program?

The Forest Service plans to award up to $5 million in total awards under this announcement. The maximum for each award is $1 million to pay for up to 35% of total capital costs. The Forest Service may consider awarding up to $1.5 million (for up to 50% of total capital costs) for a proposal that warrants special consideration, especially for projects located in areas of high unemployment.

Is there a cost-sharing or match requirement?

Matching funds are not required; however, leveraging is required. Applicants must contribute the additional funds (leveraged funds) necessary to complete the project above and beyond the requested Forest Service funding.

When are applications due?

Applications are due January 19, 2022, 5:00 pm local time. The Forest Service expects to notify applicants of results in May 2022, with an approximate award date in August 2022.

The request for proposals and instructions can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at or call us at 530-893-4764.


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