Bill Boosts Community Wood Project Funding to $50M Annually, Expands Scope to Manufacturing

This bill, the Community Wood Facilities Assistance Act of 2025, significantly ramps up federal support for projects using forest biomass. It amends the existing program under the Farm Security and Rural Investment Act of 2002, increasing annual funding to $50 million for fiscal years 2026 through 2030. The goal is to leverage local wood resources for economic development, particularly in rural areas.

More Cash, Bigger Projects (and Bigger Match Required)

The legislation substantially increases the maximum grant amount available for a single project, jumping from $1.5 million to $5 million (Sec 2). This could enable larger, more ambitious community wood initiatives. However, there's a shift in the cost-sharing requirement. Both the Community Wood Facilities Grant Program (Sec 2) and the renamed Wood Innovations Grant Program (Sec 3) now specify that the federal grant portion cannot exceed 50% of the total project cost. Previously, the cap was different (implied 35% matching cap in Sec 2 summary, though Sec 3 clarifies federal share cap). This means local communities or businesses seeking these larger grants will need to secure significant matching funds – at least half the project cost – from other sources, potentially a heavier lift than before.

Beyond Energy: Building with Wood

A key change is broadening the types of eligible projects. While energy generation remains, the bill explicitly adds the construction of forest products manufacturing facilities to both grant programs (Sec 2 & 3). Think less about just burning wood for heat, and more about building facilities that process logs into lumber, engineered wood products, or other goods. The bill also updates criteria for energy projects, raising the thermal energy capacity limit for facilities from 5 megawatts to 15 megawatts and increasing the allowed biomass energy input percentage from 25% to 50% (Sec 2). Project selection will now also consider 'market competitiveness' alongside cost-effectiveness.

Weighing the Impact: Jobs, Growth, and Local Effects

This expansion aims to stimulate rural economies by creating jobs in construction, processing, and manufacturing, making better use of forest resources. For instance, a town near a national forest could potentially get funding to build a facility producing cross-laminated timber, supporting local loggers and creating manufacturing jobs. However, the increased scale raises points to consider. The higher 15-megawatt thermal capacity limit means potentially larger energy facilities, which could have greater local environmental footprints (like air emissions or water usage) that communities will need to evaluate. Similarly, allowing up to 50% biomass input for energy might require careful consideration of sustainable sourcing practices. How 'market competitiveness' will be weighed in grant decisions also remains to be seen, potentially favoring larger players over smaller community efforts.