Community Wood Energy and Wood Innovation Program

CFDA 10.708 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$18M FY2026
$15.1M
FY24
$18.3M
FY25
$18M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 In FY25 Community Wood Grants funded 27 projects that support active forest management, wildfire risk reduction and rural jobs/economies. More than 80% of the projects support rural jobs in areas with higher unemployment han the 2023 national average. 14 projects accelerate domestic wood energy adoption, which strongly supports markets for small diameter/low value material.

Program Objective

Provide assistance to supplement the capital costs for: 1) Installing a wood energy system that utilizes wood and wood biomass (including residuals) as the primary fuels source. 2) Building an innovative wood products facility which can include the facility, equipment, and/or equipment systems.

Projects that support the wood energy program may include: 1) Single facility central heating systems. 2) District heating systems that service several buildings. 3) Combined heat and electric systems where thermal is the primary energy output.

Projects that support the wood innovations program may include: 1) Building components or systems that use large, panelized wood construction, including mass timber 2) Wood products derived from nanotechnology or other new technology processes 3) Other innovative wood products that use low-value, low-quality wood.

Projects should support one or more criteria: 1) Latest technology boiler controls or control systems. 2) Carried out in a location where markets are needed for the low value, low quality wood. 3) Carried out in a location with limited access to natural gas pipelines; 4) Include the use of or retrofitting (or both) of existing sawmill facilities located in a location where the average annual unemployment rate exceeded the national average unemployment rate by more than 1 percent during the previous calendar year; or carried out in a location where the project would aid with forest restoration.

Eligibility

Eligible Applicants

  • U.S. State Government
  • U.S. Territory Government
  • Interstate Organization
  • Federally Recognized Tribal Government
  • Municipality/Township Government
  • County Government
  • Local Government Consortium
  • Tribal Government (other)
  • Other Special District Government
  • For-Profit Organization
  • Nonprofit Organization

How to Apply

Award Procedure

Grants, if appropriated funds are provided, will generally be nationally competitive and merit-based.

Decision Timeline

  • Approval: From 120 to 180 days
  • Renewal interval: From 30 to 60 days
Program details & compliance

Description

This grant program supports the capital costs for wood energy projects and innovative wood products facilities in locations that have limited market opportunities and utilize low value, low quality wood in support of forest restoration.

Mission Categories

Primary: Forestry

Other categories:
Forestry

Use of Funds

Allowed Uses

Projects should aid locations where markets are needed for low value, low quality wood.

Projects should:
1. Aid locations where forest restoration is needed.
2. Aid locations with previously closed or limited wood infrastructure.
3. Aid locations with limited access to natural gas pipelines.

Restrictions

The leasing of equipment and the purchase of mobile equipment /attachments for mobile equipment (e.g., forklifts, skidders, feller bunchers, self-propelled in-woods chipping units) is not allowed under this program.

Matching Requirements

Federal funds may cover no more than 35% of capital costs. Match must be from non-Federal funding.

Reporting & Compliance

Records Retention
5 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

Alex Kazer
(804) 813-0207
201 14th ST SW, 3NW, Washington, DC 20250
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-11. Spec v2.0. Last synced: 2026-05-28 07:28:01.