The project objective is to design, construct, install provide operator training and start-up a circulating fluidized bed combustion system at the Lebanon Pennsylvania Veteran`s Affairs Medical Center. This unit will co-fire coal and hospital waste providing lower cost steam for heating and possibly cooling (absorption chiller) and operation of a steam turbine-generator for limited power generation. This would permit full capacity operation of the FBC year round in spite of the VA laundry that was shut down as well as efficient destruction of both general and infectious hospital waste and steam generation. The State permitting process required for construction will be completed in early November to allow installation and construction to be completed. Operating permits will be obtained after construction has been completed. A request for proposal for stack sampling and biospore tests was released to four (4) vendors in mid-October. The proposals shall be reviewed during November and the stack sampler will be selected. Funding was approved as of August 1, 1995. Construction and installation resumed on August 21, 1995 at the LVAMC. Construction and installation continues and will be completed by late December 1995.