Legis
Energy
AB 706, Chapter 869, Statutes of 2026 · Wednesday 30 September 2026

Forest Organic Residue, Energy, and Safety Transformation (FOREST) and Wildfire Prevention Fund Act

Creates a state-funded incentive program for biomass power plants that use forest waste from high wildfire-risk areas.

The law links forest-fuel removal with support for existing, idle, and expanded biomass electricity facilities. Funding requires legislative appropriation and cannot come from ratepayer funds.

What the law does ​

  • Establishes the FOREST program and FOREST and Wildfire Prevention Fund to support biomass power generation and forest-waste use.
  • Allows qualifying in-state facilities to receive monthly incentive payments for electricity generated on or after January 1, 2027.
  • Requires eligible facilities to use forest-management waste, with at least 60% sourced from Tier 1 or Tier 2 high hazard zones, and bars waste from clearcut lands.
  • Requires facilities to sell electricity to specified retail electricity providers and either operate in listed counties or meet specified emissions limits.
  • Requires State Board of Forestry and Fire Protection regulations, public incentive rates, and prioritization of projects that maximize forest-waste disposal.
  • Makes Timber Regulation and Forest Restoration Fund support for the FOREST program subject to existing funding priorities and legislative appropriation.

Who it affects ​

  • Biomass power-plant operators seeking state reimbursement.
  • Forestry and vegetation-management projects supplying eligible forest biomass waste.
  • Retail electricity sellers, including community choice aggregators, publicly owned utilities, electrical corporations, and rural cooperatives.