Sonora, CA— A contentious proposal to build two wood pellet plants in Northern California, one in Tuolumne, has been scaled back, with plans now shifting toward wood chips instead.
Following strong opposition from environmental groups like the Natural Resources Defense Council (NRDC) and a declining global market for the pellets, Golden State Natural Resources (GSNR) decided to significantly reduce its plans to export wood pellets from Northern California’s forests. The company’s goal was to improve forest health, reduce wildfire risk, and support local economies. On Wednesday, June 25, 2025, the GSNR board, an arm of the Rural County Representatives of California, voted 4-0 to revisit its plan to construct two industrial-scale wood pellet facilities in Lassen County and Tuolumne County and to ship the pellets out of Stockton for use in energy production elsewhere.
As previously reported here, the Tuolumne plant would have been located on J-59 at the Keystone site, formerly owned by Sierra Pacific Industries. The board has now decided to explore producing wood chips for various uses across the United States, such as sustainable aviation fuels, carbon capture, and engineered wood products.
“By supplying biomass domestically to emerging green industries in sustainable fuel production and innovative wood products, GSNR’s reduced-scale project not only increases forest resiliency but directly supports sustainable biomass use innovation in accordance with state and federal goals,” said GSNR President Patrick Blacklock. “With these revisions, GSNR maintains its ongoing commitment to build wildfire and forest resilience in California and spur economic opportunities in rural communities.”
The board received over 5,550 public comments during a 90-day review period that ended on June 20, 2025. NRDC states this decision effectively means GSNR will revisit its plans, recirculate an updated impact statement, and give the public another opportunity to comment. They continue to argue that large-scale wood chip production could still cause lasting damage to California’s forests, communities, and climate, and might increase air pollution, especially around sensitive areas.
“Rural communities like Tuolumne and Calaveras counties have made it clear they want businesses that support the local economy, not big boom-and-bust industrial pursuits like those posed by GSNR’s project,” stated Megan Fiske, Environmental Advocate at Ebbetts Pass Forest Watch in Tuolumne County. “It is a shame so much time and taxpayer money was wasted waiting for GSNR to realize what rural Californians already know—big biomass is a boondoggle. Fire resiliency starts at home, and we could’ve spent millions of dollars far more effectively protecting homes and neighborhoods in our communities instead of ignoring the voice of the public and allowing GSNR to pursue this oversized, counterproductive business scheme. Yes, we need different forest management to protect our communities, but it should be driven by the community, not corporate interests looking to make a profit off rural communities’ hardships.”
California officials have tentatively approved commercial uses for the millions of dead trees, brush, and branches that contribute to wildfire risks, but the political landscape remains complex due to environmental opposition. Click here for the GSNR report on the discussion and potential next steps for the project.
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