Community Wood Facilities Assistance Act of 2025
- Bill Number
- S. 2183
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-06-26: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Last Updated
- 2026-03-26T14:02:54Z
AI-Generated Summary
Purpose
The Community Wood Facilities Assistance Act of 2025 aims to strengthen federal support for community-based facilities that process and manufacture products from forest biomass (organic material from trees and forests). It updates existing grant programs to promote sustainable use of forest resources, expand manufacturing capabilities, and boost economic opportunities in rural areas by increasing funding, eligibility, and project flexibility.
Key Provisions
- Program Renaming and Focus Shift: Renames the "Community Wood Energy and Wood Innovation Grant Program" under the Farm Security and Rural Investment Act of 2002 to the "Community Wood Facilities Grant Program." Emphasizes processing and manufacturing of forest biomass rather than just energy production or woody biomass.
- Grant Eligibility and Matching Funds: Eligible projects include construction, use, or retrofitting of facilities for forest products manufacturing. The federal grant share increases to up to 50% of project costs (previously 35%). Removes certain restrictions on grant types.
- Project Limits: Sets a maximum project cost of $5,000,000 per grant (simplifying prior tiered limits). Raises the thermal energy production cap for eligible facilities from 5 megawatts to 15 megawatts.
- Evaluation Criteria: Grants prioritize cost-effectiveness or market competitiveness, with added flexibility for broader forest products applications.
- Funding Authorization: Allocates $50,000,000 annually for fiscal years 2026 through 2030 (doubling the previous $25,000,000 for 2019–2023).
- Wood Innovations Grant Program Updates (under the Agriculture Improvement Act of 2018): Expands to include "innovations" (plural) and focuses on "expanding forest products manufacturing" through construction, use, or retrofitting. Limits federal contribution to 50% of specified amounts in certain subsections.
Significant Changes to Existing Law
- Broader Scope: Shifts from energy-focused or retrofitting existing sawmills to include new construction and general forest products manufacturing, removing limits on sawmill-specific projects.
- Increased Support Levels: Doubles annual funding and grant percentages (from 25–35% to 50%), while eliminating some prior caps (e.g., on electric energy and certain grant paragraphs) to make programs more accessible.
- Simplified Structure: Removes outdated paragraphs and redesignates others for clarity; updates headings and terminology (e.g., "woody biomass" to "primarily forest biomass") to align with modern forestry practices.
- Time Extension: Extends funding authorization forward to 2026–2030, lapsing prior years.
Potential Impacts
- On Government Agencies: The U.S. Department of Agriculture (USDA), which administers these grants, will manage higher budgets and more diverse projects, potentially increasing administrative workload but enhancing rural development programs.
- On Citizens: Rural communities gain better access to grants for local wood processing facilities, fostering job creation in forestry and manufacturing. This could improve economic resilience in timber-dependent areas without direct costs to individuals.
- On International Relations: Minimal direct impact, though promoting sustainable U.S. forest biomass use may indirectly support global environmental efforts by reducing waste and encouraging domestic resource management.
Main Stakeholders Affected
- Community Wood Facilities and Rural Businesses: Primary beneficiaries, including local sawmills, processing plants, and manufacturers seeking funds for expansion or upgrades.
- Forestry Industry: Timber producers and suppliers who provide biomass, gaining from increased market demand for forest products.
- Rural Residents and Economies: Communities in forested regions, particularly in states like New Hampshire (sponsor-led), benefiting from jobs and sustainable land use.
- USDA and Federal Agencies: Responsible for program implementation, funding distribution, and oversight.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing USDA grant authorities without creating new agencies or mandates, ensuring compliance with federal budgeting rules. No challenges to property rights or environmental regulations apparent.
- Constitutional: Aligns with Congress's spending power under Article I, Section 8, by authorizing targeted appropriations for agriculture and rural aid.
- Political: Bipartisan sponsorship (e.g., Senators Shaheen, Collins, Kelly) highlights rural economic priorities; could influence future farm bills by demonstrating support for green manufacturing, though funding levels may face budget debates in appropriations processes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Collins, Susan M. [R-ME], Sen. Kelly, Mark [D-AZ]
Recent Actions
- 2025-06-26: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- 2025-06-26: Introduced in Senate
Bill Versions
- Community Wood Facilities Assistance Act of 2025 — issued 2025-06-26 — PDF (4 pages)