US Forest Service grant gives $1 million boost to city of Prineville’s planned biomass power project

Officials say renewable energy plant will boost forest health, cut wildfire risk

PRINEVILLE, Ore. (KTVZ) – The city of Prineville has just received a $1 million boost from the U.S. Forest Service for its plans with Crook County to build a 25-megawatt renewable energy biomass plant that officials say will speed and expand forest restoration projects while reducing wildfire risk.

The Prineville Renewable Energy Project, or PREP, is a proposed 24.9-megawatt biomass power plant that City Manager Steve Forrester said Friday "will create a host of environmental, economic, and social benefits.

"The project is anticipated to increase the pace and scale of ecological restoration activities by reducing their cost," Forrester said. "The City of Prineville views the project as a sustainable, long-term solution to improving forest health and reducing wildfire risk."

The city manager said the grant from the U.S. Forest Service's Wood Products Infrastructure Assistance program "will be used to fund continued permitting and design work to move the project forward."

The city said it expects to take two years to complete permitting and design of the plant, the total cost of which has yet to be determined.

It was one of five grants totaling $4.7 million around the Northwest that the Forest Service announced last Thursday to strengthen the wood products economy and promote sustainable forest management.

"Through the Wood Products Infrastructure Assistance grant program, the Forest Service is providing funding to wood processing facilities to improve, establish, retrofit, or expand facilities that purchase and process byproducts from ecosystem restoration projects from federal or tribal lands," a regional Forest Service news release stated.

"These facilities are in areas at risk of unnaturally severe wildfire or insect and disease and are vital to the economic fabric of their communities," it said.

Oregon will receive a total of $3.7 million in funding in Fiscal Year 2023 at the following locations: 

• $1 million to the City of Prineville in Central Oregon 
• $1 million to the Cow Creek Band of the Umpqua Tribe of Indians in Southwest Oregon 
• $737,100 to Heartwood Biomass in Northeast Oregon 
• $1 million to Prairie Wood Products in East Oregon 

In Washington, SDS Lumber in Southern Washington will receive $1 million in funding. 

"The Forest Service’s investments in innovative wood products provide new economic opportunities, reduce the risk of catastrophic wildfires, and support existing jobs in disadvantaged communities and tribal communities," the agency said.

These funds are part of a $33.7 million national investment to strengthen the wood products economy and promote sustainable forest management.

Here's more from the U.S. Department of Agriculture's news release on the grants:

Biden-Harris Administration Invests Nearly $34M to Strengthen Wood Products Economy, Forest Sector Jobs, Sustainable Forest Management

WASHINGTON, April 6, 2023 — As part of its goal of investing in rural America, the Biden-Harris Administration is announcing today that $33.7 million from President Biden’s Bipartisan Infrastructure Law will fund projects to strengthen the wood products economy and promote sustainable forest management. This investment supports a crucial link between resilient, healthy forests and strong rural economies and jobs in the forestry sector, especially in communities that depend on national forests and grasslands to grow and thrive.

“Healthy forests depend on a healthy forest products industry and as the nation faces an ongoing wildfire crisis, it is more important than ever to invest in sustainable forest management across all lands,” said Agriculture Secretary Tom Vilsack. “These investments will reduce the risk of catastrophic wildfires, support existing jobs, and create new economic opportunities in tribal and economically disadvantaged communities.”

Forest restoration creates byproducts like small diameter timber and woody biomass, which has historically been of little market value. Thanks in part to USDA Forest Service investments in innovative wood products, this material which may have been discarded, can be made into many types of wood products.

Today’s announcement provides $29 million to establish, reopen, or improve businesses that purchase and process these byproducts from projects on federally managed lands or tribal lands at risk of wildfire, insects and disease. More than two-thirds of the funded businesses will use byproducts from forest restoration and hazardous fuels reduction on landscapes identified in the Forest Service’s Wildfire Crisis Strategy.

These businesses are also vital employers in disadvantaged communities and tribal communities. Two thirds of all funded proposals will be implemented in disadvantaged communities as identified by the Climate and Economic Justice Screening Tool. Funding will also directly support tribal communities that are expanding manufacturing capacity.

In addition to supporting wood processing facilities, $4.7 million will fund temporary water crossing for skidders and other heavy forestry equipment. These bridges protect streams, creeks and wetlands during forestry operations. The funding will assist in implementing a rental or cost-share program that promotes the use of temporary water crossings across all lands.

Visit the Forest Service website for more information on funding for innovative uses of wood, detailed information on funding to wood processing facilities, and the Forest Service’s temporary bridges program.