The U.S. Department of Agriculture awarded $250,000 each to projects in Grand, Fremont, El Paso and Boulder counties today to help convert the state’s dead wood into new energy.

Admittedly a small cash infusion for dealing with a gigantic problem, the funding is still  welcome by a state reeling from forest devastation caused by the pine beetle infestation. Biomass advocates are looking to the dead trees as a potential source of raw feedstock for biofuel applications, and hope this is just the start of a large scale movement.

The federal economic-stimulus money will be used to help convert wood collected during wildfire- and pine-beetle mitigation efforts for a prison boiler in Florence; to augment Colorado Springs Utilities’ coal-fired facility; to fuel Boulder County Open Space and Parks’ biomass heating system; and to fund grinding, hauling and processing for Confluence Energy’s wood-pellet facility in Kremmling.

“Wood-to-energy is a key component of our new-energy economy, and these USDA grants reflect Colorado’s national leadership in advancing biofuels and renewable energy,” Gov. Bill Ritter said in a statement. “These funds provide a boost to innovative businesses developing this technology and helps restore and manage Colorado’s forests and natural resources.

Colorado was one of 14 states receiving USDA grants today.