ANNOTATION: The potential for biomass utilization to enhance the economics of treating hazardous forest fuels was examined on the Bitterroot National Forest and surrounding areas. Initial forest stand conditions were identified from Forest Inventory and Analysis (FIA) data and the Forest Vegetation Simulator (FVS) was used to simulate stand growth and development and estimate removed volumes. Harvest and haul cost models were used to estimate stump to mill costs. Temporal and spatial implications of utilization were examined to identify sustainable quantities and associated costs based on accessibility, haul distance, flow, and quantity of small-diameter material. ABSTRACT: Utilization of small-sized wood (biomass) from forests as a potential source of renewable energy is an increasingly important aspect of fuels management on public lands as an alternative to traditional disposal methods (open burning). The potential for biomass utilization to enhance the economics of treating hazardous forest fuels was examined on the Bitterroot National Forest and surrounding areas. Initial forest stand conditions were identified from Forest Inventory and Analysis (FIA) data. The Forest Vegetation Simulator (FVS) was used to simulate stand growth and development and estimate removed volumes. Harvest and haul cost models were used to estimate stump to mill costs and these were integrated into MAGIS, a natural resources decision-support system. Temporal and spatial implications of utilization were examined through optimization modeling with MAGIS to identify sustainable quantities and associated costs based on accessibility, haul distance, flow, and quantity of small-diameter material. This study enables land managers, investors, and policy-makers to make informed economic and environmental decisions regarding biomass as a renewable energy source in the Bitterroot National Forest area and will serve as a model for biomass utilization in other areas.