This purpose of this report is to present the progress made on the project ''Establishment of an Environmental Control Technology Laboratory (ECTL) with a Circulating Fluidized-Bed Combustion (CFBC) System'' during the period April 1, 2005 through June 30, 2005. The following tasks have been completed. First, the new Combustion Laboratory was occupied on June 15, 2005, and the construction of the Circulating Fluidized-Bed (CFB) Combustor Building is in the final painting stage. Second, the fabrication and manufacturing contract for the CFBC Facility was awarded to Sterling Boiler & Mechanical, Inc. of Evansville, Indiana. Sterling is manufacturing the assembly and component parts of the CFBC system. The erection of the CFBC system is expected to start September 1, 2005. Third, mercury emissions from the cofiring of coal and chicken waste was studied experimentally in the laboratory-scale simulated fluidized-bed combustion facility. The experimental results from this study are presented in this report. Finally, the proposed work for the next quarter is described.