Forest Biomass to Carbon-Negative Biofuels Pilot Program

Portal ID:
Opportunity Type:
  • Grant
Last Updated:



Create carbon-negative fuels from materials resulting from forest vegetation management. All eligible projects identify a California use of the hydrogen or liquid fuel to be created and have a lifecycle analysis of the carbon emitted and sequestered from the project, including any emissions from related transportation needs of bringing the feedstock materials to the facility and delivering resulting fuels and carbon dioxide to end uses


Program funds are being awarded through a competitive solicitation, in two phases:1) Planning (Phase 1): A maximum award of $500,000 per awardee, and up to $4,000,000 total, to support technology demonstration and planning activities that simultaneously manage catastrophic wildfire risks, address rural economic development, and develop carbon negative fuels.2) Implementation (Phase 2) anticipated for 2024: Awards between $10 ‐ 20 million, up to a maximum of four awards, to establish facilities that will produce carbon negative biofuels. Phase 2 will be open to any applicant, including those that did not receive or apply for Phase 1 funds. Applicants who received Phase 1 funding are not guaranteed Phase 2 funding and will need to apply for such additional funding.

Phase 1 Eligibility: All applicant types – including local government, tribal nations, academic institutions, non-profit organizations, and for-profit businesses and corporations – are encouraged to apply.

Projects eligible under this solicitation must be designed to create carbon-negative hydrogen and/or liquid fuel from forest biomass waste in the Sierra Nevada. Based on legislatively defined program requirements, planned projects must meet the following minimum criteria to be eligible for funding:a. The project must use 60% or more forest biomass waste as feedstock, sourced from the Sierra Nevada.b. A majority of the capital expenditures associated with an integrated project, including the processing facility and associated infrastructure, must be located within the Sierra Nevada, with transparent reasoning provided by the applicant.c. All projects receiving grant funding shall identify a California use of the hydrogen or liquid fuel to be created.d. The fuel produced must be carbon negative on a life cycle basis, meaning that the greenhouse gases (GHG) sequestered must exceed the GHGs emitted from the project. The DOC anticipates that the geologic sequestration of biogenic CO2 (often referred to as “carbon capture and sequestration,” or CCS), the co-production and use of biochar as a soil amendment, and co-production of durable products are potential pathways to achieve carbon negativity.

Eligibility Requirements

Eligible Applicants:

  • Business
  • Individual
  • Nonprofit
  • Public Agency
  • Tribal Government

All applicant types eligible

Eligible Geographies:

The funds are required to be awarded to pilot projects located within the Sierra Nevada.

Important Dates

The date (and time, where applicable) by which all applications must be submitted to the grantmaker. Time listed as “00:00” equates to midnight.
The date on which the grantor expects to announce the recipient(s) of the grant.
January 23, 2023
The length of time during which the grant money must be utilized.
1 years

Funding Details

The total projected dollar amount of the grant.
A single grant opportunity may represent one or many awards. Some grantors may know in advance the exact number of awards to be given. Others may indicate a range. Some may wish to and wait until the application period closes before determining how many awards to offer; in this case, a value of “Dependent” will display.
Grant opportunities representing multiple awards may offer awards in the same amount or in varied amounts. Some may wish to wait until the application period closes before determining per-award amounts; in this case, a value of “Dependent” will display.
$10,000 – $500,000
Certain grants require that the recipient(s) provide a letter of intent.
Certain grants require that the recipient(s) be able to fully or partially match the grant award amount with another funding source.
The funding source allocated to fund the grant. It may be either State or Federal (or a combination of both), and be tied to a specific piece of legislation, a proposition, or a bond number.
  • State

Funding Source Notes:

$50M budget allocation in FY21-22 budget, SB 155 (2021; Committee on Budget): SEC. 50.

The manner in which the grant funding will be delivered to the awardee. Funding methods include reimbursements (where the recipient spends out-of-pocket and is reimbursed by the grantor) and advances (where the recipient spends received grant funds directly).
  • Reimbursement(s)

How to Apply

State agencies/departments recommend you read the full grant guidelines before applying.


For questions about this grant, contact:
Nicole Kim, 1-916-809-0377,