USDA Announces Over $61 Million to Process Forest Biomass and a New Facility Opens in Tuolumne County
USDA Announces $61.25 Million for California Projects from the Timber Production and Expansion Guaranteed Loan Program
March 23, 2026 – The U.S. Department of Agriculture (USDA) announced $115.2 million in loans through the Timber Production and Expansion Guaranteed Loan Program to support projects in eight states that will help sawmills and other wood processing facilities establish, reopen, expand, or improve their operations. $61.24 million was allocated to three companies in California:
- Blue Mountain Electric Company, LLC ($25M) to support the construction and operation of a 3MW gasification plant in Wilseyville in Calaveras County, which plans to convert forestry biomass waste into synthetic natural gas.
- Alpenglow Timber, LLC ($18.5M) to establish a new sawmill in the North Tahoe/Truckee area, which is expected to create new jobs in a community with a 4.7% unemployment rate.
- Sierra Forest Products Holdings, Inc. ($17.75M) to expand and modernize operations, improve efficiency, and increase timber processing capacity.
New Biomass Facility Opens in Tuolumne County
March 12, 2027 – The Sierra Nevada Conservancy (SNC) announced the completion of the federally funded Community and Watershed Resilience Program with the opening of the Tuolumne BioEnergy facility in Sonora, which, alongside the Tuolumne Biomass facility, utilizes forest-restoration material to create jobs and produce wood products while reducing wildfire fuels. The program, funded through a $70.4 million National Disaster Resilience Competition grant following the 2013 Rim Fire, included forest- and watershed-health projects on 14,000 acres, creation of two community resilience centers, and strategic fuel breaks to protect communities and landscapes. By converting excess biomass into usable products and supporting large-scale fuels reduction, these facilities enhance forest resilience, lower wildfire risk, and provide long-term economic and ecological benefits to Tuolumne County.