Opportunity Information: Apply for USDA FS COMMUNITY WOOD 2023

The 2023 Community Wood Energy and Wood Innovation Program (CWEWIP) is a competitive USDA Forest Service grant program designed to move shovel-ready projects into construction or implementation that expand the use of renewable wood energy and grow capacity for innovative wood products manufacturing. The program is rooted in several federal authorities, including rural revitalization and energy provisions in the Agriculture Improvement Act of 2018 and funding support tied to the Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law). At its core, CWEWIP is meant to connect forest management needs with local economic development by encouraging projects that use wood and forest residues in higher-value, locally beneficial ways.

The Forest Service is looking for proposals that clearly deliver on three outcomes: expanding thermally led community wood energy or innovative wood product opportunities, improving forest health, and stimulating local economies. "Thermally led" is an important emphasis for the energy side of this program, meaning projects are expected to be driven primarily by useful heat production (often with the option to add cooling and/or electricity), rather than being electricity-only concepts. The overall idea is to create practical, near-term markets for biomass and wood materials that can support hazardous fuels reduction, thinning, and other forest health treatments, while also creating jobs and retaining economic value in rural communities.

Eligible projects are capital-focused and intended to be ready to go, with no expectation that the award will be followed by a long search for additional funds or extended delays. Examples the agency highlights include installing a community-scale wood energy system that provides heating, cooling, and/or electricity and replaces fossil fuels like coal, oil, propane, or natural gas; purchasing and installing manufacturing equipment for a mass timber production facility; expanding an existing sawmill to add higher-value product lines using innovative technologies and cost-saving measures; and equipping a new facility to produce biofuels using forest residues. These examples show that the program is not limited to energy systems alone; it also supports wood products innovation and manufacturing modernization, particularly where it increases utilization of available wood and improves economic resilience.

Funding is subject to availability, with the Forest Service planning up to $17 million in total awards under this announcement. The standard maximum award is $1 million, and it can cover up to 35 percent of a project’s total capital costs. In certain cases that warrant special consideration, especially projects located in high-unemployment areas, the Forest Service may consider awards up to $1.5 million covering up to 50 percent of total capital costs. This structure makes it clear that CWEWIP is designed to share costs rather than fully fund projects, and applicants need to have the remaining financing lined up so the project can be completed within the grant period.

While the program states that matching funds are not required, leveraging is required, which functions similarly in practice because applicants must cover the balance of project costs beyond the federal share. For example, if an applicant requests Forest Service funding equal to 35 percent of total capital costs, the applicant must commit to the remaining 65 percent as leveraged funds. Those leveraged funds must come from non-federal sources, must be committed within the grant timeframe, and must be documented. If third parties are contributing toward the leveraged amount, the application must include commitment letters confirming the amounts being provided. The program notes that leveraged funds generally carry a lower reporting burden and fewer legal requirements than formal match, but applicants still must follow the program’s leveraged funding requirements and be able to demonstrate that the full project financing is real and time-bound.

A wide range of applicants can apply, including nonprofits; local, state, and tribal governments; for-profit businesses and corporations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, school districts, and ports. The opportunity is listed as a discretionary grant under CFDA 10.708, with the funding opportunity number USDA FS COMMUNITY WOOD 2023. The original closing date listed for this round was March 23, 2023, and the stated award ceiling for the standard award is $1,000,000.

For applicant support, the Forest Service points to a pre-recorded informational webcast hosted on Vimeo and directs applicants to the Wood Innovations homepage for additional program details. The official application materials and instructions are provided through the program’s application form (FS-1500-0051) and the published guidance for the FY23 Community Wood Program, which outline how to apply and what documentation is required to demonstrate readiness, costs, and the committed leveraged funding needed to complete the project.

  • The Forest Service in the natural resources sector is offering a public funding opportunity titled "2023 Community Wood Energy and Wood Innovation Program" 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 2023-01-31.
  • Applicants must submit their applications by 2023-03-23. (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.
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