We examine the use of woody residues, primarily from forest harvesting or wood products manufacturing operations (and to a limited degree from urban wood wastes), as a feedstock for direct-combustion bioenergy systems for electrical or thermal power applications. We examine opportunities for utilizing biomass for energy at several different scales, with an emphasis on larger scale electrical power generation at stand-alone facilities, and on smaller scale facilities (thermal heating only) such as governmental, educational, or other institutional facilities. We then identify west-wide barriers that tend to inhibit bioenergy applications, including accessibility, terrain, harvesting costs, and capital costs. Finally, we evaluate the role of government as a catalyst in stimulating new technologies and new uses of biomass material.