The proposed grant project includes installation and demonstration of four systems for low-rate production of magnetocaloric material to be used in refrigeration. These systems are an arc melt rotating disk atomization furnace, vacuum hot press, anneal furnace, and heat treatment technology. The Recipient's existing production facility contains a smaller scale operation having equipment of lower capacity. The new equipment would add to, or replace, existing equipment. Only small modifications to the building interior would be necessary. The CEQA existing facilities exemption applies to operation and minor alteration of existing private structures, facilities, and mechanical equipment involving negligible or no expansion of existing or former use. The proposed project entails minor alteration of an existing private structure and its equipment, and no expansion of the facility in square footage terms. Therefore, this project is exempt under California Code of Regulations, title 14, section 15301, Existing Facilities.