Woody biomass utilization is critical to resolving forest health issues in Wyoming and Colorado. This paper discusses technical assistance site visits conducted to help address the effects of insect infestation and excessively high forest fuel loading. It provides a thought-provoking look at the issues and opportunities for utilizing small-diameter wood and woody biomass to help reduce widespread risk of insect infestation such as the mountain pine beetle (Dendroctonus ponderosae) and risk of catastrophic wildfire. Many questions and uncertainties have yet to be addressed as to how to achieve sustainable forests. Several critical factors and opportunities are considered for utilizing small-diameter material and woody biomass. The scope of this technical assistance visit to Wyoming and Colorado is applicable throughout the Western United States. Keywords: Woody biomass, sort yards, feasibility, mountain pine beetle, hazardous fuels, Colorado, Wyoming, markets, forest products, biomass energy.