The Escambia County Utilities Authority (ECUA) is completing performance testing and startup of sludge drying facilities to replace incineration of sludge at its Main Street Wastewater Treatment Plant in Pensacola, Florida. Feed solids to the dryers include undigested primary sludge, waste activated sludge (WAS), and treated septage/grease trap wastes. A fluidized bed drying technology was selected for this application because of its economy at the planned scale, and capability of producing a pellet product with good materials handling characteristics. ECUA is the first municipal installation for this technology in the US. A distribution and marketing (D&M) program is currently being developed, centered on local agricultural users. KEY WORDSHeat drying, Class A pathogen reduction, product distribution and marketing (D&M), design-build.