Opportunity Information: Apply for USDA FS WOOD INNOVATIONS 2022

The 2022 Wood Innovations Funding Opportunity is a discretionary grant program from the U.S. Department of Agriculture, Forest Service (CFDA 10.674) designed to rapidly grow wood products and wood energy markets across the United States. The core idea is to strengthen demand and infrastructure for using wood, especially material generated through forest management and restoration work, so that land managers have more practical and affordable options for removing hazardous fuels and improving overall forest health. By expanding these markets, the Forest Service is aiming to support management needs on National Forest System lands as well as other federal, state, tribal, local, and private forestlands, while also delivering economic benefits to communities that depend on forest-related industries.

The funding priorities are tightly tied to forest and community outcomes. Proposals are expected to help reduce hazardous fuels and improve forest health, lower the cost of forest management across all land types, and promote both economic and environmental well-being in local communities. In practice, this means the program is looking for projects that create real, near-term market pull for wood removed during restoration treatments, and that can show tangible benefits such as reduced treatment costs, stronger regional wood processing capacity, job impacts, or improved community resilience.

The Forest Service outlines several project types that fit the program intent. A major emphasis is on late-stage development work for commercial construction projects that use wood as the primary building material and for wood energy projects that are close to being financeable. Examples of the kinds of activities highlighted include completing engineering designs, cost analyses, and permitting work needed to move a project into construction or to secure financing. The notice is explicit that early-phase project development is not expected to be competitive, so applicants are generally expected to be beyond concept-stage and moving toward execution.

Beyond late-stage project readiness, the opportunity supports expansion of manufacturing capacity and related infrastructure needed to process and use restoration wood, along with efforts to develop or strengthen markets for these products. It also encourages demonstration projects that can quantify environmental and economic benefits of wood as a sustainable building material through an actual commercial building, paired with analysis of how those benefits could scale if replicated nationally based on commercial construction trends. In addition, the program seeks to build long-term capacity through statewide wood utilization teams and statewide wood energy teams, but only in states that do not currently have, and have not previously had, such a team. Another eligible direction is creating a cluster of wood energy projects in a defined geography or within a specific sector like prisons, hospitals, universities, manufacturing, or other industrial applications, as well as projects aimed at overcoming market barriers that are limiting adoption of wood energy in the commercial sector.

From an administrative standpoint, the funding instrument is a grant, with an award ceiling of $250,000 per award. The opportunity was posted on October 20, 2021, and the original application deadline was January 19, 2022. An informational pre-application webinar was scheduled for November 9, 2021 at 2:00 p.m. Eastern, with call-in and accessibility options provided through the Federal Relay Service for TDD users. Application materials, including the official Request for Proposals and instructions, were made available through the Forest Service Wood Innovations program pages and associated application download links referenced in the notice.

Eligibility is broad and includes for-profit entities as well as public and nonprofit organizations. Specifically, eligible applicants include state, local, and tribal governments; school districts; community and not-for-profit organizations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, and ports. Overall, the program is structured to back projects that are close enough to implementation to produce measurable near-term market impacts, while also building the longer-term systems (manufacturing, teams, clustered deployments, and market barrier removal) needed to make wood utilization a durable part of forest restoration and community economic development.

  • The Forest Service in the natural resources sector is offering a public funding opportunity titled "2022 Wood Innovations Funding Opportunity" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.674.
  • 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 $250,000.00 in funding.
  • Eligible applicants include: Others.
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Frequently Asked Questions (FAQs): 2022 Wood Innovations Funding Opportunity (USDA Forest Service)

What is the 2022 Wood Innovations Funding Opportunity?

The 2022 Wood Innovations Funding Opportunity is a discretionary grant program from the U.S. Department of Agriculture (USDA), Forest Service (CFDA 10.674). Its purpose is to rapidly grow wood products and wood energy markets across the United States, with an emphasis on increasing demand and infrastructure for using wood produced through forest management and restoration activities.

What is the main goal of this grant program?

The core goal is to strengthen markets for wood (including wood generated through hazardous fuels reduction and forest restoration treatments) so land managers have more practical and affordable options for removing hazardous fuels and improving forest health. By expanding these markets, the program aims to support forest management needs and deliver economic benefits to forest-dependent communities.

How does the program connect wood markets to forest health and hazardous fuels reduction?

The program is designed to create near-term market demand (market pull) for wood removed during restoration treatments. Stronger markets and processing capacity can reduce disposal costs and help offset treatment costs, making it easier to conduct hazardous fuels reduction and restoration work across National Forest System lands and other federal, state, tribal, local, and private forestlands.

What outcomes are proposals expected to support?

Proposals are expected to align with outcomes such as reducing hazardous fuels and improving forest health, lowering the cost of forest management across land types, and promoting economic and environmental well-being in local communities. The opportunity emphasizes measurable, near-term impacts that strengthen wood processing capacity, reduce treatment costs, support jobs, and improve community resilience.

What types of projects does this opportunity prioritize?

The Forest Service highlights several project types, with a major emphasis on late-stage development work for commercial construction projects using wood as the primary building material and for wood energy projects that are close to being financeable. The opportunity also supports manufacturing capacity expansion, market development, demonstration projects for wood construction benefits, statewide wood utilization/energy teams (in eligible states), clusters of wood energy projects, and projects that address market barriers limiting commercial wood energy adoption.

What does "late-stage development" mean in the context of this grant?

Late-stage development refers to work that helps move a project into construction or enables financing. Examples listed include completing engineering designs, cost analyses, and permitting work. The notice indicates that early-phase development (concept-stage work) is not expected to be competitive.

Are early-stage or concept-only projects competitive under this opportunity?

No. The notice explicitly states that early-phase project development is not expected to be competitive. Applicants are generally expected to be beyond the concept stage and moving toward implementation.

What kinds of commercial construction projects fit the program?

The opportunity emphasizes commercial construction projects that use wood as the primary building material, particularly where grant-funded late-stage development tasks (such as engineering, cost analysis, or permitting) can help the project proceed to construction and demonstrate market demand for wood.

What kinds of wood energy projects fit the program?

Wood energy projects that are close to being financeable are a major emphasis. The program also encourages development of a cluster of wood energy projects in a defined geography or within a specific sector (for example prisons, hospitals, universities, manufacturing, or other industrial applications), and projects intended to overcome market barriers limiting commercial wood energy adoption.

Does the program support expansion of wood manufacturing or processing capacity?

Yes. The opportunity supports expansion of manufacturing capacity and related infrastructure needed to process and use wood from restoration work, along with efforts to develop or strengthen markets for wood products.

What are the demonstration project expectations mentioned in the notice?

The program encourages demonstration projects that quantify environmental and economic benefits of wood as a sustainable building material through an actual commercial building. It also calls for analysis of how those benefits could scale if replicated nationally based on commercial construction trends.

What are statewide wood utilization teams and statewide wood energy teams?

The opportunity seeks to build long-term capacity through statewide wood utilization teams and statewide wood energy teams, but only in states that do not currently have, and have not previously had, such a team.

Can any state apply to create a statewide wood utilization team or wood energy team?

No. This eligible direction is limited to states that do not currently have and have not previously had a statewide wood utilization team or statewide wood energy team.

What is the funding instrument for this opportunity?

The funding instrument is a grant.

What is the maximum award amount?

The award ceiling is $250,000 per award.

Who is the awarding agency?

The awarding agency is the U.S. Department of Agriculture (USDA), Forest Service.

What is the CFDA number associated with this opportunity?

The notice identifies the program under CFDA 10.674.

When was the opportunity posted and what was the application deadline?

The opportunity was posted on October 20, 2021. The original application deadline was January 19, 2022.

Was there a pre-application webinar?

Yes. An informational pre-application webinar was scheduled for November 9, 2021 at 2:00 p.m. Eastern.

Were accessibility options available for the webinar?

Yes. The notice states that call-in and accessibility options were provided through the Federal Relay Service for TDD users.

Where were application materials and instructions made available?

Application materials, including the official Request for Proposals and instructions, were made available through the Forest Service Wood Innovations program pages and associated application download links referenced in the notice.

Who is eligible to apply?

Eligibility is broad and includes for-profit entities as well as public and nonprofit organizations. Specifically, eligible applicants include state, local, and tribal governments; school districts; community and not-for-profit organizations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, and ports.

Are for-profit entities eligible?

Yes. The notice states that eligibility includes for-profit entities, along with public and nonprofit organizations.

Are tribal governments eligible?

Yes. Tribal governments are specifically listed as eligible applicants.

Are special purpose districts eligible, and what are examples?

Yes. The notice lists special purpose districts as eligible applicants and provides examples including public utility districts, fire districts, conservation districts, and ports.

What kinds of benefits should a strong proposal be able to show?

Based on the notice language, strong proposals should be able to show tangible benefits tied to near-term market impacts and forest/community outcomes. Examples mentioned include reduced treatment costs, stronger regional wood processing capacity, job impacts, improved community resilience, and measurable progress toward project execution (such as moving to construction or securing financing).

What land types does the program aim to support through expanded wood markets?

The program aims to support management needs on National Forest System lands as well as other federal, state, tribal, local, and private forestlands.

Does the opportunity focus only on wood products, or also on wood energy?

It covers both. The notice describes efforts to grow wood products markets and wood energy markets, including project types specifically oriented toward commercial wood construction and wood energy deployment.

How does the program describe the kinds of projects it wants to fund overall?

Overall, the program is structured to back projects that are close enough to implementation to produce measurable near-term market impacts, while also building longer-term systems such as manufacturing capacity, statewide teams (where eligible), clustered wood energy deployments, and efforts to remove market barriers that limit broader adoption.

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