Community Wood Energy Innovation Act of 2018 This bill amends the Farm Security and Rural Investment Act of 2002 to reauthorize and modify the Forest Service Community Wood Energy Program. Under current law, the program provides grants for: (1) state and local governments to develop community wood energy plans or acquire or upgrade community wood energy systems, and (2) for biomass consumer cooperatives. The bill makes private entities eligible for grants and modifies the purposes for which the grants may be used. The grants may be used to install a community wood energy system or to build an innovative wood product facility in an area in which the market for low-value, low-quality wood used by the community wood energy system or innovative wood product facility has declined.