Abundant stocks of woody biomass that are associated with active forest management can be used as fuel for bioenergy in many applications. Though factors driving large-scale biomass use in industrial settings have been studied extensively, small-scale biomass combustion systems commonly used by institutions for heating have received less attention. A zero inflated negative binomial (ZINB) model is employed to identify economic and policy factors favorable to installation and operation of these systems. This allows us to determine the effectiveness of existing policies and identify locations where conditions offer the greatest potential for additional promotion of biomass use. Adoption is driven by heating needs, fossil fuel prices, and proximity to woody biomass resources, specifically logging residues, National Forests, and fuel treatments under the National Fire Plan.