2026 Community Wood Energy and Wood Innovation Program

The Community Wood Energy and Wood Innovation Program is a competitive federal grant administered by the U.S. Department of Agriculture, Forest Service. It was established to advance renewable wood energy and innovative wood products in rural communities across the United States. The program supports the goals of several legislative acts, including the Agriculture Improvement Act of 2018, the Infrastructure Investment and Jobs Act, and U.S. Code on Rural Revitalization Technologies. The program aligns with federal priorities to improve forest health, reduce wildfire risk, promote domestic timber and biomass utilization, and stimulate local economies through sustainable forest product infrastructure development. This funding opportunity targets projects that are "shovel-ready" and aim to either install thermally led community wood energy systems or develop and expand innovative wood product facilities. Examples of eligible projects include installing biomass-based heating systems to replace fossil fuels, expanding sawmills with new technologies, building mass timber facilities, or producing biofuels from forest residues. The program explicitly supports projects that utilize low-value or underutilized wood and seeks to drive job creation and economic stimulation in rural or economically distressed areas. Preference is given to projects aligned with restoration objectives, especially those sited in high-unemployment areas or lacking access to natural gas infrastructure. Funding under this opportunity will total up to $15 million, with individual awards typically capped at $1 million to cover a maximum of 35% of total capital costs. However, projects demonstrating special circumstances—such as high unemployment or critical infrastructure needs—may request up to $1.5 million, covering up to 50% of total capital costs. Matching funds are not required, but leveraged funds are mandatory. Applicants must provide at least 65% of total capital costs from non-federal sources. All leveraged contributions must be documented, and if provided by third parties, letters of commitment are required. The application process requires submission through Grants.gov using the Workspace function. All applicants must be registered in SAM.gov with matching entity and address details. Required application components include SF-424, SF-424A, and the Community Wood Application Form (FS-1500-0051), as well as a combined PDF narrative with appendices. The application narrative must address project need, goals, timeline, budget alignment, and measurable impacts. Optional appendices may include feasibility studies, biomass supply assessments, engineering quotes, and letters of support. The use of federal funds is restricted: they cannot be applied to purchase land or permanent real property improvements, nor for mobile equipment or promotional activities. However, architectural, legal, and permitting costs related to real property may be funded. All proposals will undergo a two-phase review process including a technical evaluation panel and national prioritization. Scoring is based on project description, impact, technical criteria, and qualifications of staff and partners. The anticipated submission deadline is April 22, 2026, with awards expected by June 2026. Projects typically span 2–3 years, but may extend up to 5 years in special cases. Quarterly or semiannual progress and financial reporting will be required, and project start dates are anticipated around August 2026. The Forest Service strongly encourages applicants to consult with their Regional Wood Innovations Coordinators during the proposal development process to ensure competitiveness and eligibility.

Consult with Regional Coordinators early to align with program goals and optimize proposal competitiveness.