Sub-Scale Unit shakedown and over half of the test program were successfully completed. The results provided significant data for the final design of the demonstration plan. Final approval of the Prevention of Significant Deterioration report was received the week before site preparation was scheduled to begin. Federal EPA review of the report required an extended period of time, much more than originally estimated. Final design of the demonstration plant has continued to progress towards completion. Engineering specifications are being prepared on the building services. Preparation of arrangement and detail drawings for much of the plant systems is underway. A cost comparison study between a pulverized coal and fluidized bed fired units has been continued. The construction of the demonstration plant has begun as scheduled. Site preparation was initiated on March 26, 1979. Combustion Engineering has manned the job and is providing coordination of field activities. Work continues to develop a comprehensive shakedown and testing program for the demonstration plant. Objectives of the program are (1) to verify equipment performance and record detailed operational history and (2) to establish optimum operating conditions and procedures for maximum continuous operation, sustained partial load operation, variable load operation and cyclical operation. Testing will be scheduled to support these objectives within the restraints of the activity and program schedule.