U.S. Department of Agriculture Rural Development’s Rural Business Cooperative Service Administrator J.R. Claeys announced $115.2 million across eight states through the Timber Production and Expansion Guaranteed Loan Program (TPEP), to ensure sawmills and other wood processing facilities have the necessary funding to establish, reopen, expand, or improve their operations. The March 23 announcement highlights three Timber Production and Expansion Loan recipients in California, totaling $61.25M, the largest investment for a state in the nation.
“We cannot allow wildfires to devastate and destroy our rural communities,” said Claeys. “That’s why the USDA is taking this bold action to stop the destruction of our forestlands by investing in sawmills and wood processing facilities that support sustainable timber harvesting.”
The funding will assist with projects in the states of California, Idaho, Kansas, Louisiana, Maine, Oklahoma, Virginia, and Wisconsin.
“After years of severe wildfire impacts across the golden state, California is grateful to receive the largest TPEP investment in the nation,” said California State Director Bryan Anguiano. “This funding reflects the Trump Administration’s commitment to protecting our state from wildfire risks, while strengthening domestic timber industries that create jobs and keep our forests clean.”
The following is a selection of California projects that are receiving TPEP funding:
$25M Loan to Blue Mountain Electric Company, LLC in California to support the construction and operation of a 3-megawatt gasification plant in Wilseyville, California (Calaveras County). The facility will convert forestry biomass waste into synthetic natural gas through thermo-chemical conversion. USDA awarded $25M in financing of the estimated $42.2 million project cost, with USDA’s investment going towards construction of the plant and working capital for operating expenses.
$18.5M Loan to Alpenglow Timber LLC, in California to establish a new sawmill. USDA’s investment will fund facility construction and equipment to expand timber processing capacity in high-priority forest restoration areas and support the removal of excess vegetative material from federal lands, reducing wildfire risk and improving forest health. Alpenglow Timber LLC holds U.S. Forest Service contracts to remove wildfire-damaged timber. The project is expected to create new jobs in a community with a 4.7 percent unemployment rate, strengthening the local economy and supporting long-term stability.
$17.75M to Sierra Forest Products Holdings, Inc. to expand and modernize, improve operational efficiency, and increase timber processing capacity. Sierra Forest Products holds contracts with the U.S. Forest Service to cut and remove timber from high-priority areas, supporting cleanup and recovery in regions impacted by wildfires. The project aligns with the goals of the Timber Production Expansion Program by enhancing sawmill capabilities and facilitating the removal of excess vegetative material from federal lands in areas designated as high or very high priority for restoration.
“The value of National Forest Systems lands is demonstrated by providing various forest products, such as timber, lumber, paper, bioenergy, and other wood products,” said U.S. Forest Service Chief Tom Schultz. “The American forest products industry is critical to maintaining the health of the nation’s forests. The Timber Production and Expansion Guaranteed Loan Program is one of many ways the Forest Service partners with the timber industry to maintain rural jobs, processing facilities, and an outlet for wood that needs to be removed from national forests.”
The Timber Production Expansion Guaranteed Loan Program is made possible by a partnership between the USDA Rural Development and US Forest Service. The program helps address the wildfire crisis by investing in local sawmills that clear out dangerous fuel in forestlands, helping to remove the most immediate threats to communities, critical infrastructure, and natural resources. This program is available to qualified lenders whose loan applicants want to establish, reopen, expand, or improve a sawmill or other wood processing facility that processes ecosystem restoration byproducts from USDA Forest Service National Forest System lands.
For more information on USDA Rural Development investments in rural America, visit the Rural Data Gateway.
