The U.S. Department of Agriculture (USDA) Forest Service is offering funding for the Fiscal Year 2025 Community Wood Energy and Wood Innovation Program (CFDA 10.708). This program aims to support projects that enhance forest health, encourage renewable wood energy, and expand innovative wood product facilities, ultimately stimulating local economies. Approximately $6 million is available under this announcement, with maximum individual awards of $1 million covering up to 35% of project capital costs, or up to $1.5 million (50% of costs) for projects in high-unemployment areas. Proposals are due by December 18, 2024, with award announcements anticipated in May 2025 and project agreements by October 2025.

Eligible applicants include non-profits, local and tribal governments, state entities, for-profit companies, educational institutions, and special-purpose districts. Each applicant must have an active registration with the System for Award Management (SAM.gov) before receiving funds. Preference will be given to projects supporting underserved communities, located in areas with significant forest restoration needs, or those operating in regions with high unemployment. Projects should use commercially proven technologies, must be "shovel-ready," and may involve installing community wood energy systems or expanding wood product facilities to enhance production capacities or adopt advanced manufacturing technologies.

Funding may only be applied to project-specific capital costs; operating costs are ineligible, as are expenses related to purchasing real property or mobile equipment. However, federal funds can be used to purchase stationary wood energy and sawmill equipment, provided that these purchases follow regulations to maintain federal interest until the equipment’s fair market value drops below $10,000. Non-federal leveraged funds, covering at least 65% of project capital costs, are required, and applicants must document all funds secured for similar projects over the past five years. Applicants can also recover indirect costs by applying either a Negotiated Indirect Cost Rate Agreement (NICRA) or a 15% de minimis rate, following federal guidelines.

Applications must include two parts: (1) Cooperator Contact Information, Project Narrative, and Appendices and (2) Required Financial Forms. The narrative portion must cover basic project information, a detailed description, anticipated project impacts, technical specifications, team qualifications, and a comprehensive budget. Additionally, required appendices must include letters of support, SAM registration proof, prior funding information, resumes of key personnel, and relevant feasibility assessments. Letters of support must highlight collaboration with key stakeholders, including Forest Service units, where applicable.

Proposals will be evaluated based on four criteria: project description (20 points), project impact (40 points), technical criteria (25 points), and team qualifications (15 points). Key factors in scoring include project clarity, impact on forest health and local economy, use of advanced technology, and qualifications of team members. After regional evaluation, federal experts will conduct a technical review, and final selections will be made by the Forest Service national leadership. Award recipients are required to submit periodic progress reports, a final detailed report, and adhere to public communication guidelines.

Applicants should consult their Forest Service Regional Coordinator for guidance on project competitiveness and submission details. Additionally, the USDA Forest Service’s Community Navigator Program is available to provide technical support throughout the application process.