Opportunity Information: Apply for USDA FS WERC 2021

The 2021 Wood Innovations Funding Opportunity is a competitive grant program run by the U.S. Department of Agriculture, Forest Service (Funding Opportunity Number: USDA FS WERC 2021; CFDA: 10.674). Its purpose is to grow and speed up wood products and wood energy markets across the United States in ways that directly support forest management needs on the National Forest System as well as other forest lands. A central idea behind the program is turning hazardous fuels and other low-value wood residues, materials that are expensive and difficult to dispose of, into useful products and energy so communities and land managers have stronger economic reasons and better market pathways to carry out forest restoration and fuels reduction.

The opportunity is aligned with the Agriculture Improvement Act of 2018 (Public Law 115-334) and the Rural Revitalization Technologies authority (7 U.S.C. 6601). In practical terms, the Forest Service is looking for projects that link forest health work to durable market demand, so that thinning, hazardous fuels removal, and restoration treatments can be done more efficiently and at lower net cost over time. The program frames its goals around three outcomes: reducing hazardous fuels and improving forest health, reducing forest management costs on all land types, and strengthening the economic and environmental well-being of local communities.

Projects are expected to be action-oriented and close to implementation, not early brainstorming. The solicitation explicitly notes that early phase project development proposals and feasibility studies will not be competitive, which signals that applicants should come in with a defined project, clear partners, and a realistic pathway to completion and market impact. Examples of activities the Forest Service is willing to fund include completing architectural and engineering work, cost analyses, and permitting that are necessary to move commercial mass timber or other wood-based construction projects forward, as well as similar late-stage development work for wood energy projects that need those requirements in place to secure financing. The agency is also interested in efforts that expand manufacturing capacity or build markets for wood products that support forest ecosystem restoration, such as investments that help a region process and use restoration byproducts.

Another eligible direction is demonstrating, in a real constructed commercial building, measurable environmental and economic benefits of wood as a sustainable building material. The intent there is to increase confidence and acceptance in the construction sector and encourage broader adoption. The funding can also support creation of statewide wood utilization teams or statewide wood energy teams, but only in states that do not currently have a team and have not had one previously; in other words, this part is meant to fill gaps rather than expand existing teams. In addition, the program supports development of clusters of wood energy projects in a region or sector, or the installation of a wood energy system at an institutional, commercial, or industrial facility such as a prison, hospital, university, manufacturer, or industrial site, provided it will use forest-sourced woody biomass or residues from forest products manufacturing. Related concepts like wood biomass and wood product utilization industrial parks are included as eligible, as are projects designed to overcome market barriers and stimulate wood energy adoption in institutional, commercial, or industrial markets. Applied research can be funded as well, as long as it is practical, involves or engages industry partners, and is aimed at closing real-world knowledge gaps that can be quickly translated into market-ready advances. The solicitation also references stationary wood energy equipment, reflecting an interest in fixed-facility energy systems rather than mobile or purely experimental setups.

Funding is subject to availability, with the Forest Service planning to award up to $8 million total under this announcement. The typical maximum award is $250,000 (the listed award ceiling), though the agency notes it may consider larger awards for proposals that can credibly deliver significant, sizable market impact for wood products or wood energy. The expected number of awards is listed as 30, which suggests a fairly broad portfolio of projects rather than just a few large investments.

A major requirement is the matching share: applicants must provide at least a 1:1 match, meaning non-federal matching funds equal to 100 percent of the federal amount requested. If an applicant requests $100,000 in Forest Service funds, they must provide at least $100,000 in match. The match must come from non-federal sources and can be cash or in-kind contributions, but it must be directly tied to the proposed project. This structure is designed to ensure applicants and partners have real financial commitment and that federal dollars are leveraged alongside private, state, local, or other non-federal investment.

Key dates and logistics included a creation date of October 20, 2020, and an original application deadline of January 20, 2021. The Forest Service also offered a pre-application informational webinar on November 10, 2020, including online access and phone-in details, plus accessibility support through the Federal Relay Service for individuals using TDD. Overall, the opportunity is best understood as a market-building forest restoration tool: it funds near-term, execution-ready efforts that can expand the ability of the U.S. to use restoration wood for construction materials and energy, thereby lowering treatment costs, improving forest conditions, and supporting rural and forest-based economies.

  • The Department of Agriculture, Forest Service in the natural resources sector is offering a public funding opportunity titled "2021 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 Oct 20, 2020.
  • Applicants must submit their applications by Jan 20, 2021. (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.
  • The number of recipients for this funding is limited to 30 candidate(s).
  • Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
Apply for USDA FS WERC 2021

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