f ii This rrpon was prepared as an account of work sponsored by an agency of the Umtcd Statu Govemmnt Ndthcr the U n i d States Government nor any agency tbenof. nor any of their employees. r n b any wwanty, apnv or implied or assumes any legal liability or responsibility for the accuracy, completeness. or usefulness of any information. apparatus, product, or pracus d i v l d or rrptesenrs that its use would not infriagt pxivatdy owned r i g h u Rcfercncc h m to MY spcdfic commerdoi pmduct. p t

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... o c a s or &a by txadc name. tradpnut innnufaccurer, or ot&& doer not necarorily constitute or imply iu endontmcnt. raorn-mcn&tion. or favoring by the United States Gavcmmcnt or any w n c y thereof. The views and Opinions of autbors expressed hernn do not ncassaniy a t e or reflect tW of the United States Gavanmcnt or any agency thueof. PREFACE The Albuquerque Operations Office (AL) of the U.S. Department of Energy (DOE) is charged with managing laboratories, production plants, and energy programs in several locations throughout the United States, including New Mexico. Because of the significance of DOE activities in New Mexico, selected economic impact studies have been completed annually since the early 1980s. The types of activities that DOE/AL oversees are, for the most part, an outgrowth of atomic research that started in New Mexico in the 1940s. In New Mexico, activity that was once confined to "the Hill" (Los Alamos National Laboratory), northwest of Santa Fe, has become two national laboratories, a national waste repository, a national remedial action project, and several energy research and conservation program. The economic impact on New Mexico has grown over the years to a point where these activities provide tens of thousands of jobs and contribute billions of dollars to the state's economy. Therefore, it is appropriate that a report be provided periodically to the citizens of New Mexico describing the impact of DOE on the state. This report details activities for federal Fiscal Year 1997. A glossary of terms is located prior to the reference list. iii iv ACKNOWLEDGMENTS As is the case with studies of this type, many more people contribute to the effort than just the listed authors. The detailed information needed for the economic modeling and expenditure analysis could not have been obtained without the support of several individuals. Moreover, there are some who contribute but their contributions are not always acknowledged-to those individuals, we apologize. Albuquerque Operations Office, contacted all the DOE agencies to obtain expenditure information for this study. From each of the DOE-integrated contractor and DOE operations offices, we thank the budget officials who provided budget and expenditure data in a timely fashion. Technology Transfer offices at both Sandia National Laboratories and Los Alamos National Laboratory specifically Donna Rix and Anthony Mancino, supplied much of the text concerning annual achievements of their respective laboratories. Bruce Dale, Executive Policy Support, SNL, also provided summarized achievement information for SNL. Jim Porter and Rita Spencer, Quality and Planning Office, provided summarized achievement information for LANL. Richard Shepardson and Pam Spicer from SNL and Allan Johnston and Tom Short from LANL supplied expenditure data.