The 2026 Community Wood Energy and Wood Innovation Program is a funding opportunity provided by the Forest Service to support the installation of thermally led community wood energy systems or the development and expansion of innovative wood product facilities. The program aims to improve forest health, stimulate local economies, and expand renewable wood energy use. Eligible applicants include non-profits, local, state, and tribal governments, businesses, institutions of higher education, and special purpose districts. The maximum award amount is $1 million, and applicants must contribute leveraged funds to complete the project. The program has a focus on shovel-ready projects that can be completed within 2-3 years. Some examples of eligible projects include installing a thermally led community wood energy system, purchasing and installing manufacturing equipment at a mass timber production facility, expanding a sawmill to add higher value production lines, and purchasing and installing equipment at a new facility to produce biofuels from forest residues.
• Eligible projects include thermally led community wood energy systems and innovative wood product facilities
• Maximum award amount is $1 million
• Leveraged funds are required to complete the project
• Project duration is typically 2-3 years
• Eligible applicants include non-profits, governments, businesses, and institutions of higher education
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