2026 Community Wood Energy and Wood Innovation Program (United States)

The Community Wood Grants support shovel-ready projects that install community wood energy systems or expand innovative wood product facilities. The program aims to improve forest health, stimulate local economies, and expand renewable wood energy use. Funding is available for not-for-profits, governments, tribes, educational institutions, and businesses, with individual awards up to $1 million.

Programme Overview

The Community Wood Energy and Wood Innovation Program provides financial support to projects that:

• Install community wood energy systems

• Expand facilities producing innovative wood products

• Strengthen local economies through forest-based industries

• Promote sustainable forest management and restoration

The program links forest health with local economic development, creating markets for low-value or low-quality wood while improving forest resilience.

Goals and Objectives

• Expand thermally led community wood energy systems

• Support innovative wood product manufacturing

• Improve forest health and reduce management costs on federal, state, tribal, and private lands

• Stimulate local economies and create employment opportunities

• Encourage projects that retrofit existing sawmill facilities or use commercially proven technologies

Funding Priorities

Projects are most competitive when they:

• Aid forest restoration and resilience

• Are located where markets exist for low-value or low-quality wood

• Utilize or retrofit existing sawmill facilities in areas with high unemployment

• Operate wood-fired boilers with best-practice control technologies

• Expand renewable energy access in areas with limited natural gas pipelines

Projects that do not fully meet these priorities may still be eligible for consideration if they demonstrate strong innovation or impact.

Grant Details

• Total program funding: Up to $15 million annually

• Number of awards: Up to 25 grants

• Individual award amounts: Up to $1 million; up to $1.5 million possible with prior approval

• Application type: Competitive, shovel-ready projects

Who Is Eligible?

Eligible applicants include:

• Not-for-profit organizations

• Local, state, and tribal governments

• Higher education institutions

• Businesses and corporations

• Indian tribes

• Special purpose districts, including:

  • Public utilities districts

  • Fire districts

  • School districts

  • Conservation districts

  • Ports

How to Apply

1. Identify a project: Ensure it aligns with program objectives and priorities.

2. Prepare a proposal: Include project description, goals, technology details, expected outcomes, and budget.

3. Verify eligibility: Confirm applicant type and prior approvals if requesting over $1 million.

4. Submit application: Through the program’s official grants portal or application system.

5. Review and selection: Applications will be assessed based on alignment with program goals, technical feasibility, economic impact, and forest health outcomes.

Tips for a Competitive Proposal

• Focus on projects with clear, shovel-ready implementation plans

• Highlight local economic benefits and job creation

• Demonstrate sustainable use of low-value wood

• Include proven commercial technologies or strong innovation

• Ensure compliance with environmental and safety standards

FAQs

1. Can for-profit businesses apply?
Yes, eligible businesses and corporations may apply, alongside other eligible entities.

2. Is prior approval needed for applications over $1 million?
Yes, applicants must obtain pre-approval before submitting requests above $1 million.

3. Are projects outside the United States eligible?
Projects must operate within the United States or Tribal lands.

4. Can existing sawmills be retrofitted?
Yes, retrofitting existing sawmill facilities is a priority and can improve competitiveness.

5. What types of wood energy technologies are supported?
Projects should use commercially proven or innovative wood-fired energy systems with best-practice emission controls.

6. How is “shovel-ready” defined?
Shovel-ready projects have permits, designs, and implementation plans in place and are ready to commence construction or installation immediately upon funding.

Conclusion

The Community Wood Grants program strengthens the connection between healthy forests and vibrant local economies by funding community wood energy systems and innovative wood product facilities. By supporting sustainable forest management, renewable energy, and local economic development, these grants provide a tangible pathway for forest stewardship and economic resilience.