The project objective is to design, construct, install, and start-up a circulating fluidized bed combustion system at the Lebanon, Pennsylvania Veteran`s Affairs Medical Center. The unit will co-fire coal and hospital waste providing inexpensive and efficient destruction of both general and infectious medical waste and steam generation. Progress to date on several tasks is described. These are: Task 1.A-1.D, Design; Equipment purchase and fabrication; Installation; and Shredder system verification. Other tasks to be undertaken are: Start-up; Obtaining permits; Procuring coal, limestone and ash disposal contracts; and Conducting on-year test program. Project costs are enumerated.