district heating. Fuel utilization has been increased from 33 to 80%. District heating also has other benefits for the urban communities that should be considered. A significant amount of the sulfur dioxide and suspended solids in the urban environment originates from small, predominately oil-fired boilers supplying the heating needs of com- mercial buildings, industrial facilities, and urban housing. A major advantage of installing district heating is to replace a large number of small boilers with a large centralized cogeneration plant, municipal incinerator, or renewable heat sources. Such central sources burn less fuel and are better maintained than small boilers. This results in a significant reduction in the amount of pollutants being discharged into the atmosphere. Also, large centralized plants include pollution control equipment and discharge emissions through high stacks. The improvement in urban air quality with district heating has been demonstrated in European cities and cited as a major advantage of district heating. District heating with cogeneration also has the potential to conserve water resources, reduce thermal pollution of our waters, and reduce the adverse environmental impact of cooling tower drift because of the significant reduction in heat rejected to the environment from the central generation plant. RESEARCH AND DEVELOPMENT NEEDS One of the key factors common to district heating and waste heat utilization is the large investment in the piping transport and distribution system. The large capital investment is the main component of delivered energy cost. If the cost of piping could be substantially reduced, the economic feasibility of using low-temperature thermal energy from central facilities would be greatly enhanced. Significant progress has been made on plastic and concrete conduit technologies in the past decade. They have the potential to greatly reduce the cost of piping materials and pipe installation. However, there are significant temperature and life expectancy limitations for these new materials. A materials testing and research program is needed to develop piping systems that are lower in cost, cheaper to install, and serviceable