Community Wood Energy Grant: Up to $1M for Wood Energy and Innovation Projects
The USDA Forest Service is accepting applications for the 2026 Community Wood Energy and Wood Innovation Program, which provides grants of up to $1 million per award for projects that install community wood energy systems or develop innovative wood product facilities. The program is designed to expand the use of wood as a renewable energy source and support rural economies by creating markets for wood products sourced from forest restoration and hazardous fuels reduction efforts.
Authorized under the Rural Revitalization Technologies provision (7 U.S.C. Sec. 8113), the Agriculture Improvement Act of 2018, and the Bipartisan Infrastructure Law, this grant program supports communities, businesses, and institutions looking to invest in thermally led wood energy systems or expand wood products manufacturing capacity.
Key Details at a Glance
- Agency: USDA Forest Service
- Award Range: $10,000 - $1,000,000
- Application Deadline: April 22, 2026
- Opportunity Number: USDA-FS-COMMUNITY-WOOD-2026
- Eligible Applicants: State, local, and tribal governments; educational institutions; nonprofits; for-profit businesses
- Purpose: Install community wood energy systems or develop/expand innovative wood product facilities
What Is the Community Wood Energy Program?
The Community Wood Energy and Wood Innovation Program funds two primary types of projects. The first category supports the installation of thermally led community wood energy systems, which use wood biomass as a fuel source for heating buildings, campuses, or district energy networks. The second category supports the development or expansion of innovative wood product facilities that manufacture new or improved wood-based products.
The program prioritizes projects that utilize low-value wood sourced from forest restoration activities, hazardous fuels reduction treatments, and other sustainable forest management practices. By creating demand for these materials, the program helps reduce wildfire risk while supporting rural jobs and local economies.
Thermally led systems are those where the primary purpose is thermal energy production (heating or cooling), as opposed to electricity-only generation. Systems that combine heat and power (CHP) are eligible as long as the thermal component is the primary output.
Who Can Apply?
The Community Wood Energy and Wood Innovation Program has broad eligibility. The following types of organizations may apply:
- State and local governments - Including state agencies, counties, cities, towns, and special districts
- Tribal governments - Federally recognized Indian Tribes and Tribal organizations
- Educational institutions - Public and private schools, colleges, and universities
- Nonprofit organizations - 501(c)(3) organizations working in energy, forestry, or community development
- For-profit businesses - Private companies involved in wood products manufacturing, biomass energy, or related industries
Applicants must demonstrate access to a sustainable supply of woody biomass and show how the project will benefit the local community or region. Projects that source wood from National Forest System lands or other federal lands undergoing restoration treatments are particularly well-aligned with program goals.
What Does the Grant Fund?
The program supports two distinct project categories, each with its own set of eligible activities and requirements.
Community Wood Energy Systems
Funding is available for the planning, design, purchase, and installation of thermally led wood energy systems. Eligible activities include:
- Biomass boiler systems - Purchase and installation of wood-fired boilers for heating individual buildings or campus facilities
- District energy systems - Development of wood-fueled district heating networks that serve multiple buildings or facilities
- Combined heat and power (CHP) - Systems that generate both thermal energy and electricity from wood biomass, where thermal output is the primary purpose
- Fuel storage and handling - Equipment and infrastructure for receiving, storing, and feeding wood fuel into energy systems
- Distribution infrastructure - Piping, controls, and metering equipment for distributing thermal energy
Innovative Wood Product Facilities
Funding also supports the development or expansion of facilities that manufacture innovative wood products. Eligible activities include:
- Mass timber manufacturing - Equipment and facility improvements for producing cross-laminated timber (CLT), glue-laminated timber, or other mass timber products
- Engineered wood products - Development of manufacturing capacity for new or improved engineered wood products
- Wood-based composites - Production facilities for wood fiber composites, biochar, wood pellets, or other value-added wood products
- Processing equipment - Purchase and installation of equipment that expands production capacity or enables new product lines
Related Opportunity: Wood Innovations Grant
In addition to the Community Wood Energy program, the USDA Forest Service also offers the Wood Innovations Grant (Opportunity Number: USDA-FS-WOOD-INNOVATIONS-2026), which provides awards of up to $300,000 for projects that expand wood energy and wood products markets. While the Community Wood Energy program focuses on capital investments in systems and facilities, the Wood Innovations Grant supports a broader range of activities including market development, feasibility studies, business planning, and outreach efforts.
Organizations interested in wood energy or wood products should review both programs to determine which best fits their project scope and stage of development. In some cases, applicants may benefit from applying to both programs for different phases of their work.
How to Apply
Applications for the Community Wood Energy and Wood Innovation Program must be submitted through Grants.gov by the April 22, 2026 deadline. Here are the key steps to prepare your application:
- Register on SAM.gov - Ensure your organization has an active Unique Entity Identifier (UEI) and SAM.gov registration. Registration can take several weeks, so start early if you have not already registered.
- Review the full Notice of Funding Opportunity (NOFO) - Search for opportunity number USDA-FS-COMMUNITY-WOOD-2026 on Grants.gov to access the complete application requirements.
- Prepare your project narrative - Describe your project goals, timeline, budget, expected outcomes, and how the project aligns with program priorities.
- Document your wood supply - Provide evidence of a sustainable and reliable source of woody biomass for your project.
- Complete required forms - Submit the SF-424 (Application for Federal Assistance) and all other required forms as specified in the NOFO.
- Submit by April 22, 2026 - Allow time for Grants.gov processing, as late submissions will not be accepted.
How Avila Can Help
Applying for the Community Wood Energy and Wood Innovation Program requires a well-crafted project narrative, detailed budget documentation, and evidence of a sustainable wood supply. Avila's AI-powered platform helps organizations streamline the grant application process by:
- Identifying relevant grant opportunities like this USDA Forest Service program from federal databases
- Analyzing eligibility requirements and matching them to your organization's profile
- Generating draft narratives tailored to program requirements and scoring criteria
- Managing application timelines and ensuring all required documents are prepared
With the application deadline on April 22, 2026, now is the time to begin preparing your proposal. Contact Avila today to learn how our platform can help you secure funding for your wood energy or wood innovation project.