1. Short title This Act may be cited as the Community Wood Energy Innovation Act of 2018 . 2. Community wood energy and wood innovation program Section 9013 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8113 ) is amended to read as follows: 9013. Community wood energy and wood innovation program (a) Definitions In this section: (1) Community wood energy system (A) In general The term community wood energy system means an energy system that— (i) produces useful— (I) thermal energy; or (II) combined thermal energy and electricity, where thermal energy is the primary energy produced; (ii) services— (I) public facilities owned or operated by State or local governments, including schools, town halls, libraries, and other public buildings; or (II) private or nonprofit facilities, including commercial and business facilities, such as hospitals, office buildings, apartment buildings, and manufacturing and industrial buildings; and (iii) uses woody biomass, including residuals from wood processing facilities, as the primary fuel. (B) Inclusions The term community wood energy system includes— (i) single facility central heating systems; (ii) district heating systems serving multiple buildings; (iii) combined heat and electric systems, where thermal energy is the primary energy produced; and (iv) other related biomass energy systems, as determined by the Secretary. (2) Eligible entity The term eligible entity means— (A) a State; (B) a local government; (C) a nonprofit entity; or (D) a private commercial entity. (3) Eligible project The term eligible project means a project described in subsection (b)(2). (4) Innovative wood product facility The term innovative wood product facility means a manufacturing or processing plant or mill that produces— (A) building components or systems that use large panelized wood construction, including mass timber; (B) wood products derived from nanotechnology or other new technology processes, as determined by the Secretary