Opportunity Information: Apply for USDA FS COMMUNITY WOOD 2022

The 2022 Community Wood Energy and Wood Innovation Funding Opportunity is a discretionary grant program run by the U.S. Forest Service (CFDA 10.708) under the authority of the Agriculture Improvement Act of 2018 (7 U.S. Code 8113). It is designed to push forward two closely related goals: growing the use of renewable, wood-based energy at the community scale and expanding manufacturing capacity for innovative wood products. The Forest Service frames the program around three outcomes: expanding thermally led community wood energy systems and/or innovative wood product opportunities, improving forest health, and stimulating local economies, particularly in rural or forested regions where restoration work and wood utilization can support jobs and reduce wildfire and disease risks.

The opportunity targets "shovel-ready" projects, meaning proposals are expected to be ready to build or install and able to finish within the award period without needing extra time or additional funding beyond what the applicant already has lined up. The Forest Service is looking for capital-focused projects that create tangible infrastructure or production capability. Examples include installing a thermally led community wood energy system that provides heating, cooling, and/or electricity and displaces fossil fuels like coal, fuel oil, propane, or natural gas; purchasing and installing manufacturing equipment at a mass timber facility; expanding an existing sawmill to add higher-value product lines using innovative technology and cost-saving measures; or buying and installing equipment at a new facility to produce biofuels from forest residues. The common thread across these examples is that they increase markets for wood (including low-value or residual material), which can, in turn, support forest restoration and local employment.

Funding is limited and competitive. The Forest Service indicated it planned to award up to $5 million in total under this announcement, depending on availability. Individual awards are generally capped at $1 million and can cover up to 35 percent of a project's total capital costs. In certain cases, the agency may consider awards up to $1.5 million covering up to 50 percent of total capital costs when a proposal warrants special consideration, with an emphasis on projects located in high-unemployment areas. Even though matching funds are not required in the formal sense, the program does require leveraging. That means the applicant must bring the remainder of the project funds from non-federal sources to fully complete the project. For instance, if the request is for 35 percent of capital costs, the applicant must commit to the remaining 65 percent as leveraged funds.

The leveraging rules are a central compliance point. Leveraged funds must come from non-federal sources and must be committed within the grant timeframe. If any of the leveraged funds come from third parties, the applicant needs to include commitment letters in the proposal package that clearly confirm the amount being contributed and the commitment to provide it. While leveraged funds generally carry fewer administrative burdens than formal cost-share matches, applicants are still expected to follow the program's requirements and demonstrate that the full project financing is real, committed, and available so the project can be completed as proposed.

Eligible applicants are broad and include non-profits; local, state, and tribal governments; for-profit businesses, companies, and corporations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, school districts, and ports. The official funding opportunity number is USDA FS COMMUNITY WOOD 2022. Key dates included a creation date of October 20, 2021 and an original closing date of January 19, 2022. The Forest Service also offered a pre-application informational webinar on November 9, 2021, with call-in options and Federal Relay Service access for TDD users, and directed applicants to the Wood Innovations homepage for the request for proposals, instructions, and application materials.

  • The Forest Service in the natural resources sector is offering a public funding opportunity titled "2022 Community Wood Energy and Wood Innovation Funding Opportunity" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.708.
  • This funding opportunity was created on 2021-10-20.
  • Applicants must submit their applications by 2022-01-19. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $1,000,000.00 in funding.
  • Eligible applicants include: Others.
Apply for USDA FS COMMUNITY WOOD 2022

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