Objectives and focus The objectives of this paper are to better inform stakeholders about current biomass sourcing practices, to highlight the key role of Sustainable Forest Management (SFM) in forest-based biomass energy production, to outline commercial realities of SFM decision making in the context of healthy forests used for multiple purposes, and to critically examine the carbon dynamics of [...] These conditions in the SE US region are due in large part to strong forestry research, education, and outreach programs throughout the region coupled with a long history of investment, and commitment to forest retention and management on the part of forest landowners. [...] The objectives of this paper are to better inform stakeholders about current biomass sourcing practices, to highlight the key role of SFM in forest-based biomass energy production, to outline commercial realities of SFM decision making in the context of healthy forests used for multiple purposes, and to critically examine the carbon dynamics of forests from which biomass fuels are obtained. [...] Regarding the debate on the carbon balance of biomass for energy (primarily around the time between the release of carbon when biomass is combusted and carbon uptake through subsequent forest re-growth) the report reviews methodological choices and scenario assumptions when analysing the carbon balance of bioenergy, and the impact these are having on the scenario outcomes. [...] Next, the issue of biomass carbon neutrality is considered in the context of forests, with extensive discussion of carbon modelling and the importance of correct selection of both methods and assumptions (chapter 5).