The California State Senate has unanimously passed Assembly Bill 706, titled the Forest Organic Residue, Energy and Safety Transformation (FOREST) and Wildfire Prevention Act. Originally introduced in February, the amended legislation establishes a state framework designed to maintain existing biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More power capacity, restart idle thermal generation facilities, and expand solid-fuel electrical output across designated northern and central California counties. Following its Senate approval on August 26, 2026, the amended bill now returns to the California State Assembly for a concurrence vote. If fully enacted, the economic incentives under the FOREST program will apply to eligible bioenergy generation starting January 1, 2027.

California faces catastrophic wildfire risks and severe forest management challenges driven by the accumulation of dense, high-hazard woody biomass. Traditional forestry management requires significant thinning of dead and dying trees to reduce fuel loads; however, the lack of localized off-take markets leaves forest management operations economically strained. When biomass power plants shut down or operate under capacity due to unfavorable power purchase agreements, large volumes of residual forest waste are either left to decay or burned in open-pile burns. Open burning releases unchecked criteria pollutants and greenhouse gases while forfeiting the opportunity to utilize waste wood for controlled, high-efficiency energy conversion or high-value biocarbon co-products.

To mitigate these environmental and operational bottlenecks, AB 706 creates the FOREST program, offering state-administered financial reimbursement rates for solid-fuel biomass power plants that utilize forest waste as primary feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More. To qualify for financial incentives, power generation facilities must source at least 60 percent of their total feedstock from designated Tier 1 and Tier 2 high-hazard fire zones and prohibit wood sourced from clearcut silvicultural practices. Additionally, participating facilities located outside specified rural counties must comply with advanced emission limits that meet or exceed local Best Available Retrofit Control Technology (BARCT) standards. Generated power must be sold directly to in-state retail electricity providers, including municipal utilities and community choice aggregators.

The passage of AB 706 establishes a structured, policy-backed revenue model for biomass thermal facilities, directly stabilizing off-take demand for forest management residues throughout California. By guaranteeing incentive support tied to high-hazard feedstock sourcing, the bill provides regional forestry supply chains with predictable operational economics. For the broader biocarbon sector, sustaining operational thermal conversion infrastructure maintains vital processing nodes that can be adapted to produce high-purity biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More, process steam, and verified biomass carbon removal and storage (BiCRS) credits while actively reducing catastrophic wildfire risk.