The purpose of this report is to present the progress made on the project ''Establishment of an Environmental Control Technology Laboratory with a Circulating Fluidized-Bed Combustion (CFBC) System'' during the quarter January--March 2004. The following tasks have been completed. First, plans for the renovation of space for a new Combustion Laboratory for the CFBC Facility have progressed smoothly. Second, the design calculations, including the mass balances, energy balances, heat transfer, and strength calculations have been completed. Third, considerable modifications have been made on the draft design of the CFBC Facility based on discussions conducted during the project kick-off meeting held on January 13, 2004 at the National Energy Technology Laboratory (NETL). Comments received from various experts were also used to improve the design. Finally, the drawings of all assembly parts have been completed in order to develop specifications for the fabrication of individual parts. At the same time, the proposed work for the next quarter has been outlined in this report.